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Full text of "Business practice in interior design"

BUSINESS PRACTICE IN INTERIOR DESIGN 

by V/ 

JACQUELINE HANLY WARD 
B. S., Kansas State University, 1938 



A MASTER' S THESIS 



submitted in partial fulfillment of the 



requirements for the degree 



MASTER OF SCIENCE 



Department of Clothing, Textiles 
and Interior Design 



KANSAS STATE UNIVERSITY 
Manhattan, Kansas 



1967 



Approved by : 




:j(L <U J At j ML, USJA, 

Major Professor 



KO 

ALL? 
Ti 



ii 



PREFACE AMD ACKKOWLEDGMENTS 



Many interior designers and decorators have expressed 
individually and through trade publications a need in the 
profession for more information about business practice and 
procedures. Very limited studies have been made. 

There has been a difference of opinion among the schools 
and the designers regarding what business knowledge should 
be expected of graduate interior designers and decorators. 
With the invaluable assistance of Professor Opal Brown Kill, 
who is an Education Associate Member of the American Institute 
of Interior Designers, an investigation was made of many busi- 
ness practices and procedures being used in this broad field. 

Much of this information would not have been available 
without these studies and the Man ual of Professional Practice 
of the American Institute of Designers and the Handbook o_f 
Professio nal Practice of the- American Institute of Architects. 
In addition, I am grateful for the apprenticeship training I 
received from Lucy Drage, Inc. of Kansas City, Missouri. Lucy 
Drage and Ethel Guy were probably not aware of the impact they 
had on me. I am also grateful for the year of post-graduate 
study I was given in interior design at Moore Institute of 
Art in Philadelphia many years ago. J an most grateful for my 
husband Leland C. Uard, a graduate architectural er.ginee'r, 
with whom T have been a full partner in our contract-design 



business for over twenty years. Without his assistance and 
cooperation this effort would never have been possible. And 
I do not forget our five children during these months of 
neglect from their mother! 



iv 



TABLE OF CONTENTS 

CHAPTER PACE 

I. THE PROBLEM 1 

Introduction . . . . 1. 

The Problem '■■ 

Statement of the Problem 4 

Importance, of the Study 4 

Procedures 7 

Determination of Selected Business 

Practices 7 

Selection of Sources 7 

Comparable Terms 9 

Organization of the Remainder of the Thesis. ... II 
II. THE PROFESSION AND THE RESPONSIBILITIES OF 

THE PROFESSION 12 

The National Aspects of the Profession 12 

The State Aspects of the Profession 14 

The Local Aspects cf the Profession 14 

Public Relations and Publicity 16 

The Profession and the Client. .......... IS 

The Profession and its Relation to other 

Professions, Trades, an d B usinesses. . . . . . . 2 6 

III. THE BUSINESS, ITS ORGANIZATION AND PROCEDURES. . . . 35 

Forms of Business Organization . . 35 



CHAPTER PAGE 

Federal, State, and Local Laws, Statutes, 
Ordinances, and Regulations Which 

Affect Business 39 

Office Organization and Procedures 42 

Financial Aspects of business 50 

Allocation of Job Costs 53 

Labor ant! Material Supplio. rs 56 

IV. SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS 61 

Conclusions 64 

Recommendations . ... 65 

SELECTED BIBLIOGRAPHY 66 

APPENDIX 77 

A. Sources of Business Information 78 

B. A Typical List of Business, Services, Trades, 

and Organizations Related to Interior Design . . . 86 

C. Sample Business Forms SO 

D. Credit Letters and Forms 98 

E. Contracts 108 

F. Letters 124 



LIST OF TABLES 



vi 



Table 

I. ORGANIZATIONS AMU THEIR ABBREVIATIONS . . . 
II. NUMBER OF DESIGN OFFICES ACCORDING TO SIZE. 



Page 
. 10 
. 4 3 






II. 
III. 

IV. 
V. 



ex. 



LIST OF PLATES 

Page 
Diagram of the Training Required to lie a 

Professional Interior Designer 2 

Establishing Good Public Relations 19 

Protocol tor Review and Establishing Clientele. . . 25 

Client Confidence in Designer 27 

Membership in Professional, Trade, Civic, and 

Other Organizations 29 

Flow Chart - Normal Client/Designer Negotiation 
Format Based on Pure Services-Rendered Type 

Agreement 31 

Flow Chart - Format Based on the Designer 

Becoming a Merchant Selling Merchandise 32 

Flow Chart - Nornal Client /lies igner Negotiation 
Format Based on the Designer Acting in the 

Capacity of a Contractor 33 

Types of Business Organization 40 

Flow Chart - Minimum Records Requirement for 

the Office 49 



CHAPTER I 



INTRODUCTION 



At the present time there is no uniformity among the var- 
ious schools as to Just what courses the interior designer is 
required to study and master in order to earn a degree. 
Even less consistency exists among schools concerning the 
business practice with which the interior designer will be in- 
volved. The interior designer is in business and does handle 

2 
rather large sums of money. It is the concern of this study 

to point out some of the aspects of business which may con- 
front the designer in his profession. 

A gradual change has occured from the term interior 
decorator to the more inclusive term interior designer. The 
term interior designer refers to a person who plans, selects, 
arranges, constructs, or in some way contributes toward the 
aesthetics of the inside of a building. This building may be 
a home, hotel, industrial plant, monument, public building, 
or ship; it may be large or small; it may be costly or inex- 
pensive. The designer decides what furnishings are needed 
and how they shall be located. He determines colors, textures 



Donald Holden, Art Career Guide . New York: Watson- 
Goptill Publications, Inc., 1961. 

2 
Dede Draper, The Professional Speaks," Interiors , 
CXXIII:12 (July, 1964). 











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moods, and he selects wall surfaces, floor coverings, and 
lighting. He may become involved with any portion of an 
interior. He say work independently or he may work as a mem- 
ber of a team with architects, contractors, and tradesmen. 
He may work with a client who may be an individual, several 
persons, a corporation or other entity. He may prepare in- 
terior architectural plans, sketches, models, or perspectives 
which may be simple or elaborate. Interior design is a crea- 
tive field expressed in terms of the functional and aesthetic 
requirements of the client, usually within certain economic 
bounds . 

The interior designer is a person well-trained in the 
principles of design and beauty. He may have studied at a 
college, university, or art school. He usually has a degree 
in his field. There are no state laws requiring that he pass 

an examination for license to practice, although the American 

4 
Institute of Interior Designers is working on tnis project. 

Michigan, Connecticut, and California have considered licensing 

laws in their state legislatures. See Plate I, page 2 for a 

chart showing the possible training of an interior designer. 



Holden, oo- ci t . 

4 
Robert Stevens, Chairman, Report of Committee on 
ment and Apprenticeship," Interior Design Educators Cou 
(Purdue University, May 12-15, 1966), p. 2 of proceedin 
(Mimeographed. ) 

Arnold Friedmann, "Environmental Design — The Risi 
Tide," Interior Design 66 , University of California Ext 
Berkeley. Keynote address printed in program, August 27 
September 9, 1966, p. 5. 



Place- 
ncil t 



g«. 



ension/ 



THE PROBLEM 

Statement of the Problem 

The purpose of this thesis is to answer two questions. 
(1) "What business practices nay be required by the interior 
designer?" (2) "Where can the designer obtain business in- 
formation?" The answers to these questions were assembled in 
a concise summation of interior design business practices and 
resources . 

Importance of the Study 

A series of articles that appeared in Contract magazine 
in 1966 called attention to the lack of training given to in- 
terior design students in the area of business practice. 

7 8 

Other magazines, notably Interiors , Interior Design . and 

9 
Industrial Design have carried articles emphasizing this 

need. At a meeting May 12-15, 1966, at Purdue University, the 



John Anderson, "Design Education in Schools Today," 
p. 80-85; Lawrence Lerner, "How Should the Student Designer 
be Trained for Contract Work?" p. 72-75; Lawrence Lerner and 
John Anderson, editorial contributors, "The Educational Pro- 
blem," p. 69-71, Contract . (April, 1965); editorial, "Model 
Design School Curriculum Focus of IDEC Meeting," p. 72-73; 
Marvin Affrime, "What About Sensitivity, Taste, Integrity?" 
p. 73-75, Contract . (June, 1965). 

"For Your Information," Interiors , CXXV:12, (July, 
1966) , p. 8. 

o 

"The Professional Speaks," Interior D e s i ~, n , (July, 
1964) . 

9 

Barbara J. Allen, Assoc. Ed., Profiles of Consultant 
Design Offices: Henry Dreyfuss," Industrial Design , Vol. 13, 
No. 6, (June, 1966), p. 46-68. 






Interior Design Educators Council recommended that profession- 
al information in interior design should encompass four to 
five percent of the entire course work in schools. 

Hone Furnishings Daily in an article, "Updated Appren- 
ticeship," reported the results of an apprenticeship program 
used in the New York City area for training student interior 
designers in actual business practice. Students and designers 
familiar with the program acclaimed it to be an answer to the 
void which exists for experience in business. 

These articles, conversations with interior designers, 
correspondence with designers, and a personal conviction about 
the subject emphasized the importance for a study of business 
practices in interior design. 

A thorough investigation of resources indicated that 
there are no publicly printed references on business practices 
for the interior designer. The American Institute of 

Architects Handbook of Professional Practice was the only 

12 
reference found to be available in public libraries. It 



Interior Design Educators Council, (Purdue Univer- 
sity), (mineographed proceedings). 

News item in Home Furnishings Daily . New York: 
Fairchild Publications, Inc., July 24, 1964. 

12 

The Architect s HandbooK of Professional Practice . 

Washington, D. C, The American Institute of Architects, 1964. 

[Referred to simply as Handbook in following references]. 



has much valuable information but it is not written for the 
interior designer. In 1917 the American Institute of Archi- 
tects recognized the need for outlining and giving sources of 
information for its profession. In 1920 the first Handbook 
o f Architectural Practice was issued. It has been revised many 
times since that first printing but it remains the guide for 
architects in business. There are now licensing laws in all 
fifty states for the practice of architecture. 

The interior designer has no such book. The American 

13 
Institute of Interior Designers does have a similar manual 

available to its membership and Gladys Miller told partici- 
pants at Interior Pes i ^n 66 that a few copies of this manual 

14 
are available in public libraries. A. I. D. membership is 

granted to those persons who have had adequate training and 

experience to qualify for the high standards of membership 

specified by this organization. Unlike architects, there are 

no licensing laws for the interior designer. 



13 

Manual of Professional Practice , American Institute 

of Interior Designers, (private publication), 1955. At this 
time the American Institute of Decorators, (A. I. D.) is 
called the American Institute of Designers. The manual used 
was published under its former name, and it was in an univer- 
sity library, K.S.U. 

14 

Interior Design 66 . op . ci t . , p. 27. 






PROCEDURES 

Determination of Selected Business ?•.:. Ices 

A list was compiled of the business practices covered in 
the Manual of Professional Practice of the American Institute 
of Designers and the Handbook of Professional Practice of the 
American Institute of Architects. The two lists were compared 
and reclassified under those practices which applied to the 
profession and client relationships and those which applied to 
the mechanics of business practices. 

Those portions of business practice which were specifi- 
cally identified with the American Institute of Designers or 
the American Institute of Architects were deleted. In addi- 
tion, those sections which were more specifically related to 
the profession of law or accounting were given less attention 
because the investigation believed they belong within the 
realm of those disciplines. Those business practices parti- 
cularly emphasized in the series of articles which appeared 
in the April and June 1966 issues of Contract and later in 
Interiors were noted for particular consideration. 



Selection of Sources 

It was decided that the most current and pertinent in- 
terior design business information would be available from 
designers who are or have been very recently practicing in 
the design field. Many have been quoted in the design period- 
icals. Those statements which pertained to the selected 






business practices were chosen for reference. Letters were 
written to James Merrick Smith, president of the American 
Institute of Designers, Arthur Friedman of Pratt Institute, 
the presidents of the National Society of Interior Designers 
and the National Home Fashions League, the editors of 
Contract magazine, lecturers at Design 66 and Design 67 , the 
Interior Design Educators Council, and Rita Battistine of 
Scalanandre Silks , Inc . They were asked if they thought it 
worthwhile to identify standard business practices, what 
business practices they considered most important for con- 
sideration, and they were also asked for suggestions. Miss 
Battistine, Mr. Friedman, and Mr. Smith were the most encour- 
aging but not enough information was returned to use as a 
basis for a thesis. 

Interior design business practices were found to be a 
considerable concern of Design 66 . Design 67 , and the Interior 
Design Educators Council. The reviews and proceedings of 
these lectures, workshops, and other meetings formed the basis 
for this study. At every opportunity during this study, peo- 
ple were involved in conversation to identify what their ex- 
perience had bc^L concerning the many selected business and 
professional design business practices. Many persons con- 
tacted have not been cited in this thesis. Their contribu- 
tions did substantiate the general information compounded and 
it was valuable for this reason. 



This thesis did not follow usual research procedures be- 
cause it was not concerned with specific questions and answers. 
Notes were taken of all information collected from the many 
sources and these were categorized by the business aspects 
selected. No one was contacted who was not experienced in the 
profession. 

Business sources for general information were obtained 
from the libraries of Kansas State University, Nevada Southern 
University, the city library of Las Vegas, Nevada, and Las 
Ve„„s High School. Specific books were selected which were 
known to be written by learned persons from accepted schools 
of business and other recommended sources. 

COMPARABLE TERMS 

The names of professional associations and organizations 
are frequently as well known by their abbreviated initials as 
by their correct full name. The terms are interchanged in 
this thesis as indicated in Table I. 

Authorities differed in their reference to Pes ign 66 and 
Interior Design 66 which were the same workshop. The terms 
are interchanged in this paper according to the source of 
information. Interior Design [without 66] refers to the 
periodical. 



ICj 



ORGANIZATIONS AND THEIR ABBREVIATIONS 



Name of Organization Abbreviation 

American Association of University Women A. A. U. W. 

American Institute of Architects A. I. A. 

American Institute of Designers A. I. D. 

American Institute of Electrical Engineers A. I. E. E. 

American Society of Interior Designers A. S. I. D. 

American Society of Landscape Architects A. S. L. A. 

American Society of Mechanical Engineers A. S. M. E. 

American Society for Testing Materials A. S. T. M. 

Associated General Contractors of America A. G. C. 

National Association of Home Builders N. A. H. B. 

National Home Fashions League N. H. F. L. 

National Retail Furniture Association N. R. F. A. 

National Society of Interior Designers '.. . S. I. D. 



11 



ORGANIZATION OF REMAINDER OF THE THESIS 

The business practices and procedures of a wide variety 
of designers and decorators were studied and reported. This 
study was divided into two broad areas. One was of the pro- 
fession, its responsibilities and ethics nationally, state- 
wide, and locally with reference to its correlation with other 
professions and trades, its relationship to its clients, and 
related subjects. The other area of study was concentrated on 
business organization, laws, statutes and regulations, fi- 
nances, costs, and labor and material procurement. That part 
of the study was followed by a summary, bibliography, and an 
appendix of forms and other pertinent data collected for this 
study. The bibliography is annotated for references that 
might not otherwise be understood. 



12 



CHAPTER II 
THE PROFESSION AND "l.Z RESPONSIBILITIES OF THE PROFESSION 

The National Aspects of the Profession 

Interior decorators and designers are found to be in 
every state and in communities large enough to have a depart- 
ment store or a furniture store. The profession was found to 
be very decentralized with great diversity of occupation. 
Some designers were self-employed while others worked for an 
employer. They worked in design offices, architectural offices, 
industrial design and space design offices; they worked for 
manufacturers of furniture, accessories, automobiles, buses, 
aircraft, carpet, plumbing fixtures, and lighting fixtures; 
they were employed by hotel and motel chains, decorating shops, 
and department and furniture stores; they were with the Nation- 
al Park Service, boards of education, business machines compa- 
nies; and they worked in related fields such as ceramics and 
textiles. They were located in both high and low rent dis- 
tricts . 

Membership in professional, trade, and civic organiza- 
tions was considered advantageous to the interior designer. 



Donald Holden, Art Career Guide , Chapter IX; "Corpor- 
ation Staff Designers," Interiors , CXXV:12, (July, 1966). 



13 



Two national professional associations have a large member- 
ship and there are smaller organizations. In 1966 the Ameri- 
can Institute of Designers, with headquarters in New York 

City, reported a membership of 4500 with 41 chapters drawing 

2 
membership from every state and throughout the world. The 

National Society of Interior Designers also has a large mem- 
bership. According to Rene A. Henry, Jr. there should be a 
close liason between all of the related professional groups 
in the industry such as A. I. A., A.S.L.A., A.S.I.D., N.A.H.S., 

National Home Fashions League and National Home Improvement 

3 
Council. Three Nevada N. S. I. D. members were asked why 

they paid dues to a chapter in California even though they 

never attended meetings. They felt there was prestige value 

4 
and publicity which was worth the cost of membership. A 

large firm doins seven-figure contracts for school districts 

and the national government felt that membership in the 

National Painting and Decorating Association was invaluable 

for work with the labor market and union negotiations. 



2 
"For Your Information," Interiors , CXXVI:4 (November, 
1966), p. 8. 

Rene A. Henry, Jr. "Professional Public Relations," 
Interior Design 66 . p. 55 of the printed program. Mr. Henry 
is Publicity Director for Lennen and Newell, Inc., San Fran- 
cisco. He gave many valuable pointers to those enrolled in 
the workshop meetings and lectures of Design 66 . 

A 

Richard E. McArthur, Houston F. Barton, and Florence 
Stevens. Personal conversations, February and June, 1967, Las 
Vegas , Nevada. 

George Saxton, Soller Corporation, Las Vegas, Nevada. 
Conversation, May, 1967. 



14 



The State Aspects of the Profession 

No uniform code of licensing for inferior designers in 
the various states was found. The Interior Design Educators 
Council is investigating this subject. Announcements of state 
and local association meetings were frequently made in the 
various trade periodicals such as Interiors . Interior Design , 
Industrial Design , Contract . and Home Furnishings Daily . In- 
formation concerning state fees was found to be available at 
the State offices in the various states. Frequently state 
offices were located in the larger communities outside of the 
state capital. 

The Local Aspects of the Profession 

Membership in professional, business, trade, and social 

6 
organizations was considered advantageous by most designers. 

Time and cost were limiting factors. These associations pro- 
vided valuable client contacts, business relationships, and 
assistance with business and civic problems. Mr. Henry 
strongly emphasized the importance of taking part in local 
community organizations and even thought this activity should 
include government, such as local planning or art commissions 
or even school boards. 



Manual of Professional Practice . American Institure 
of Designers, 1955, p. 23. 

Rene A. Henry, Jr., o_p_. ci t . . p. 54. 



Licensing fees and other fees for doing business varied 
from community to community. In some areas such as Los 
Angeles and Las Vegas, Nevada, it was necessary to have li- 
censes to operate in adjacent cities and counties. Ac- 
cording to William A. Dark, who has an office in Lynwood, 
California, he has been required to have as many as ten dif- 
ferent licenses to do business in the Los Angeles area. Spe- 
cific information was found to be available in the city and 
county offices in each area. The designer is responsible for 
knowing the requirements and for complying with them. 

George Saxton of Las Vegas, Nevada, found it profitable 
to know and to seek the advice from other trade associations 
when doing contract work that involved trades such as painting 
and papering. 

Leland C. Ward explained the value of good relations with 
trade associations during the decorating of the casino area 
of the Landmark Tower Hotel in Las Vegas. Sculpture work 
of metal was to be hung on plaster papered walls. The de- 
signer and contractor were required to have two carpenters 





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iam A. Dark, Lynwood, California in a conversa- 
1967, concerning the problems involved when doing 
than one municipality. 

ge Saxton, Solar Corporation, Las Vegas, Nevada, 
in May, 1967, with Mr. Saxton at which time he 
cifically about how he handled such matters. 

and C. Ward, Ward and Ward, Contractors-Designers, 
vada. Conversation, May, 1967, concerning pro- 
diting for the Landmark Tower Hotel construction 



16 



execute the actual hanging of the sculpture. The National 
Painters and Decorators Council was able to make the proper 
decision as to who should be hired to make the installation. 
As a result, conflict with trade unions was avoided. A good 
relationship wit'h this organization expedited the work effi- 
ciently without labor difficulties. In communities large 
enough to have many trade organizations it was advised that 
when a designer contracts to do work with which he has had no 
previous experience, it is wise to go to the local trade 
associations which have this information. In smaller cities 
there would not be the problem. 

Public Relations and Publicity 

No disagreement was found concerning the importance of 

public relations and publicity. This statement was found in 

the A. I. D. Manual of Professional Practice 

The fact that a Decorator has exceptional 
ability, offers excellent services or gives good 
value in desirable merchandise means nothing until 
these services are brought to the attention of 
those who want them.^-1 

Many decorators were found who hire public relations personnel 

to create the proper image for their firm. Nothing was found 

to indicate that direct sales or new clients resulted from 

this practice. Interiors magazine interviewed several design 



11 



Manual of Professional Practice , op. cit., p. 23-24. 



17 



12 
firms concerning their business practices. None reported 

any direct results from publicity and hired public relations 
agents. Dorothy- Draper said that all new business comes from 
word-of-mouth and that no business has ever come from publi- 
city. She stated that it is important to be known especially 
by architects and she thinks it important to get one's name 
in top trade magazines. She thought that appearance in a 
trade show was a waste of time. Tom Lee, Ltd. said that new 
business comes by reputation and personal contact. That firm 
retains a public relations representative and they pay $500/ 
month for photography and placing stories. According to the 
firm, cafe society column publicity is important for private 
decorating. This firm stated, "Publicity never has brought 
any clients but keeping your name before the public helps." 
Another firm reported an expenditure of $1,000 per year on 
photography. Publicity and public relations were both con- 
sidered necessary for successful business. Public relations 
were best obtained through active participation in professional 
organizations, civic clubs, trade associations, and social 
groups. Publicity was best handled by news and pictures in 



12 

The Business of Running a Business, interiors . 

CXXV:2 (September, 1965), p. 142-218. 

Ibid . 
14,, . , 



periodicals, newspapers, as well as lectures before appropri- 
ate groups. Successful jobs and happy clients were considered 
the best advertisements. No commercial advertising .of ser- 
vices is considered ethical by major professional people. Pro- 
ducts may be advertised by decorator shops. The subject 
was considered important enough that one entire session of 
Design 66 was devoted to "Professional Public Relations." 
Rene A. Henry, Jr.'s entire lecture is worth reading for more 
information on this subject. Channels for establishing 
good public relations appear on Plate II, p. 19. 

The Profession and the Client 

Very little information was found concerning client re- 
lationships and how to make them successful. However, it was 
considered one of the most important facets of business prac- 
tice by all designers considered. Nine interior designers 
were asked by the editors of Interior Design , "In what areas 
do you find beginners need further training?" Seven of them 
emphasized the importance of client relationship. One, 
Richard F. Greiwe of Cincinnati, recommended "A few courses 
in psychology would also be of value in- aiding designer and 
clinet relationship." 



16 



Rene A. Henry, Jr., ££_. cit . p. 52-56. 

"The Profession Speaks," Interior Design . July, 1964. 



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D- 



















•-• U- 



20 



Two successful projects in which an apprenticeship pro- 
gram was offered to students in the New York City area to 
help them with their practical business practice. Client re- 
lationships were stressed by both the designers and the stu- 
dents. The projects were Operation Experience , sponsored by 
the New York Chapter of the National Home Fashions League, 

and Career Springboard , which was sponsored by the Education 

1 8 
Committee of the New York Chapter of A. I. D. 

When it was stated that very little information was found 

concerning client relationships, it was not meant to infer 

that nothing has been said about the subject. Many articles 

in the trade journals have been devoted to the topic, and it 

has also been given considerable attention at workshops, 

notably Design 66 , where sixty-three interior designers with 

a broad field of experience contributed their enthusiasm and 

electric responsiveness to discussions moderated by Ruth 

19 
Sherman, A. I. D., according to Interiors . 

At Interior Pes i an 66 designers agreed that improved 

services to the client resulted in the ultimate financial 

success of the business. Knowing the client was considered 

important in order to give the best possible design service 



Home Furnishings Daily . July 24, 1964. 

19 

Olga Gueft, editorial, "IDEC to the Rescue, 

Interiors . CXXVI:3 (October, 1966), p. 97. 



21 



and to establish the paying value of the client. Although a 
contract can be broken if a client fails to pay, much time 
and costly litigation can be avoided by the selection of 
clients with good credit rating. A broken contract can re- 
sult in unfavorable publicity, deserved or not. 

The Interior Design 66 workshop, "Commercial and Insti- 
tutional Design" by its own objectives, did not establish any 
criteria in the area of business practice, but leading de- 
signers acclaimed the points stressed and did subscribe to 

many of them. Some of the points emphasized in the workshop 

20 
are herein reported. 

Having been contacted by a prospective client, there 
should be preliminary preparation by the interior designer be- 
fore contracting to do a job. The designer should research 
the client to ascertain his reliability as a client and to 
determine what he wants to do. The designer should know if 
the client is an individual or a group; the business affilia- 
tions of the client; what product or services are provided by 
the client's firm, the size of the company, the stockholders, 
and the principals involved. If the client represents a pub- 
lic institution, he should learn as much as possible about it 
including its philosophy. Credit rating should be determined 
through banks, other financial institutions, or Dun and 



20 

Interior Design 66 , op . pit . , p. 36-39; "Commercial 

and Institutional Interior Design Workshop," University of 
California Extension, San Francisco, August 31, 1966 and 
September 1, 1966. (Mimeographed) 



22 



Bradstreet. If the contract is lar^ , it is not uncommon for 
the client and designer to exchange financial statements. If 
competitors have done business with the client, it may be pos- 
sible to ask them about the client. Find out what the client 
wants to do, how much, and what budget is allowed. A list of 
sources for business and personal references is given in 
Appendix A. 

At the Interior Design 66 workshop it was recommended 
that for a first meeting with a client the designer should 
prepare a summary of his professional practice. This could 
include the names of the firm members, background information 
about the designers -r.d staff, a summary of completed jobs, 
including photographs and sketches, and the names and addresses 
of satisfied clients. Ke should indicate current jobs, have 
a financial statement available, and make known the method of 
charge used by the design firm for such work. 

Other designers have indicated that they have found that 
the client has investigated the designer before approaching 

him and that they are contacted after the client has deter- 

21 
mined that the designer meets his approval. It is impor- 
tant for the designer to know as much as possible about the 
prospective client. Other points were covered at the workshop 



fornia and Leland C. Ward, Las Vegas, Nevada, April, 1967. 
Both have designed for many years. 



23 



and Che proceedings should be read in full content for maxi- 
mum value and information. 

Other designers have indicated a somewhat different pro- 

22 
cedure with clients. These designers do not take any infor- 
mation to the meetings concerning themselves unless specifi- 
cally asked to do so. They feel that a prospective client has 
asked them to come because they are professionally knowledge- 
able in their field. They solve the design as they understand 
the requirements presented by the client. The design is ac- 
cepted or rejected and changes are made as required by the 
client. They do not make catalogs available unless specifi- 
cally requested because it offers too much opportunity for the 
client to digress from the original design. They offer alter- 
nate solutions when requested. 

Josephine Houck of Germantown, Pennsylvania, and an early 
member of A. I. D. gave a series of lectures on "Business 
Practice" to students at Moore Institute of Art in Philadel- 
phia in 1939. Although this was many years ago, much that 
she said is still appropriate: 

Eusiness personality is of first importance aside 
from technical knowledge in decorating. A decorator's 
relation to her client is different from any other 
business relationship. The decorator is required to 
spend many hours with her client, so it is necessary 
for her to be friendly and yet not too intimate. The 
attitude assumed toward a client is partially governed 
by the client's attitude to the decorator and this 



24 



close relationship makes understanding necessary. 

A decorator must know how and when to appeal 
to her client. Each meeting makes it easier to 
know how to understand the desires of a client. 
Most clients have no business personality and it 
is up to the decorator to understand and adjust 
herself to each client, always keeping her business 
personality. 

There are many types of clients, some know good 
decorating and how it should be done. There are 
those who do not know good decorating, but they have 
the money to pay for it and they put their trust in 
their decorator. It is up to the decorator to jus- 
tify this trust. There are many other women — unrea- 
sonable, petty, and to each it is up to the decorator 
to learn to give all the same amount of time and 
thought. Make each client feel her work is important 
no matter how small the order. Make her feel you are 
just as interested in planning lamp shades as a whole 
room. Always be gracious. Many times one has to do 
things gratus, but don't spend too much time in this 
way. Help a client conscientiously and carefully with 
detail. Many clients will claim a scheme which the 
decorator planned. This must be overlooked. Never 
allow a client to go away dissatisfied. If she has 
just cause for complaint, adjust it to her full satis- 
faction, even though you lose money on the order. Any 
established decorator will tell you her clients are 
those for whom whe has done satisfactory work and who 
have seen her work and liked it. Some clients are 
hard to please and have poor taste. Just because they 
do not know good workmanship is no reason not to give 
them first class workmanship. If a client cannot af- 
ford the correct choice, get what she can afford in 
good taste. 

The establishment of clientele is developed in several 
ways that are illustrated on Plate III, page 25 . Client con- 
fidence in the designer is gained through the designer's 



23 

Josephine Houck , Germantown, Pennsylvania. Part of 

a lecture given to students at Moore Institute of Art in 1939. 



25 



WORD-OF MOUTH) 



REPUTATION 



ASSOCIATIONS WITH 
RELATED PROFESSIONS 



DESIGNER 



., 



CLI.ENT 



INVITATION TO BID 



DROP- IN TRADE 



IMAGE OF OFFICE OR 
SHOP 



PLATE lit 
PROTOCOL FOR REVIEW AND ESTABLISHING CLIENTELE 



26 



salesmanship, design ability, and business management. These 
are outlined in Plate IV, page 27. 

The Pro f ession and its Relation , to other Professions , Trades 
and Businesses 

Throughout this study there was considerable evidence 
that membership and affiliation with organizations of related 
professions were important for prestx^e value, public rela- 
tions, publicity, and for general knowledge of the entire in- 
dustry. In a letter from James Merrick Smith, P. A. I. D. it 

was pointed out that the practice of interior design is 

24 
changing considerably in this transitional time. Further 

evidence of the changes taking place appear in all of the de- 
sign trade journals. There is evidence that more and more 
designs are being completed through the team effort of several 
professionals such as designer, architect, engineer, planner, 
and the various contractors and sub-contractors. Particularly 
with reference to industrial and commercial design it is found 
that the total design picture is changing swiftly to meet the 
demands of modern society and its increasingly sophisticated 
economy. According to John L. Chapman this concept is making 
it necessary to integrate the responsibilities of design, 



James Merrick Smith, president of American Institute 
of Interior Designers, in a reply to a letter asking about de- 
sign practice, expressed the necessity to establish certain 
standards to meet the changes occuring in the field. (June 12, 
1967). 





+■ 




UJ t— 



•— LU 



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27 



28 

25 
engineering and construction supervision. To be a member 

of this total team effort it is accessary for the designer to 
know and to be able to work within his profession and in ad- 
dition to work with all of the related professions and trades 
of the total industry. Membership in associations is an ef- 
fective way to know this inter-related industry. The success- 
ful completed design today is thought to be the result of 
good rapport and communication betwec. those who are responsi- 
ble for the total design picture. Several good articles 

have appeared in Building Construction during the Spring of 

27 
1967 which focus on the changing business structure of design. 

A list of associations related to the design business either 

28 
directly or indirectly are to be found in the appendix. 

Organization and association affiliations are charted in Plate 
V, page 29. 

Flow charts on Plates VI, VII, and VIII show the normal 
development of a contract with a client based on design ser- 
vices. The selected services are (I) pure design development, 
(2) designer performing as a contractor, (3) designer as a 
merchant. The relative liability of the contract-designer 



25 ii 

John L. Chapman, quoted in Time for a Change, 

Building Construction , (June, 1967), p. 76-7S. 

"Architects Emergency "Package" Rebuilds a School 
Fast," Building Cons truction , (June, 1967) p. 82-84. 

27 Ibid , (May and June, 1967) 

See Appendix, p 



29 



NATIONAL ORGANIZATIONS 

A, I, D, 

N. S, I, D. 
N. Hi F, L, 



STATE AND REGIONAL 

A, I, D. 
N, S, I, D. 

N, H, F, L, 



PROFESSIONAL 

A. I, D, 
N, S, I, D, 



LOCAL 



x 



TRADE 

P. D, C. A. 
FURNITURE RTL 
I. E. E, E. 
ETC, 



1 


CIVIC 




S C I A L 


CH, OF COMMERCE 




FRATERNITY 


LIONS 






KIWANIS 




CHURCH 


ROTARY 






B. P, W, 




CLUBS 


POLITICS 






ART LEAGUES 






SCHOOL BOARDS 






ETC, 







PLATE Y 
MEMBERSHIP IN PROFESSIONAL, TRADE, CIVIC, AND OTHER ORGANIZATIONS 



30 



is greatest and the pure design services involve the least 
liability. 

Every reference cited the importance of a contract for 
mutual benefit of all concerned parties in the instrumenta- 
tion of an agreed-upon design. It was found to be the effi- 
cient and business-like legal document which clarified to 
both the designer and client the scope of the design. Samples 

of contracts prepared by the American Institute of Architects 

29 
are in the Appendix G. They are included for the purpose 

of showing examples of contracts. The Manual of Professional 
Practice , the Architect ' s Handbook of Professional Practice , 
numerous books on business organization and business law, all 
of which are to be found in the Bibliography, stress the im- 
portance and necessity for each contract to be prepared for 

30 
the individual client and job. The contract is of mutual 

benefit to the designer and to the client. It tells who is 

involved, what is involved, the location of the work, the 

terms and agreements for performing the work, the method of 

payment, how the work is to be done, or any other agreements 



2 9 

See Appendix, p. for contracts covering professional 

f ee-pius-expense , multiple of direct personnel expense, per- 
centage of construction costs, professional fee plus expense, 
and other types of contracts. 

Manual of Professional Practice , p. 75. [The manual 
also has forms of contracts for use by its membership. Many 
firms print standard contracts] 



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34 



the designer and client may have. Many designers indicated 
that they had never had to use the legal contract in contest 
but they still ..-.ought it to be necessary. The writing of a 
contract requires the professional knowledge of an attorney- 
at-law and for this reason, it is not covered more fully in 
this report. 

Most designers agreed that as soon as the client and de- 
signer have mutual understanding of the business aspects of t 
job they can devote their time and talents to the more in- 
teresting design elements. 



35 



CHAPTER III 

THE BUSINESS, ITS ORGANIZATION AND PROCEDURES 

The almost unlimited source of information on business 
is much too voluminous for practical use by the designer. 
For many years' there has been a need to abstract business 
practices and procedures into a form which would be useful to 
the decorator or designer. The purpose of this portion of 
the study was to abstract this information briefly and use- 
fully for the designer. The specific selection was made 
through adherence to American Institute of Designers and 
American Institute of Architects published recommendations 
as found in their guides for professional and business prac- 
tice. 1 



Forms of Business Organization 

A business may be one of at least four types: (1) an 
individual proprietorship; (2) partnership; (3) limited 
partnership; (4) corporation. Other forms of organization 
such as the cooperative and tax-free institutions and organ- 
izations have not been considered. 

A proprietorship is the simplest form of business. If 
the designer forms this type of business under his own name 



Manual of Professional Practice . American Institute 
of Interior Decorators, 1955; and Architect ' s Handbook of 
Professional Practice . American Institute of Architects, 
Washington, D. C: 1964. 



36 



he is not required to go through any legal formalities . He 
supplies all of the capital required for the business. If he 
uses a trade name he is usually required by state law to 
register this name at a recording office. Many states forbid 
the use of "and Company" or "4 Co." after a name. Specific 
formalities and laws must be ascertained in each state. 

There are advantages and disadvantages to this type of 
business. What would be beneficial to one person may be the 
very problem presented for another. Advantages of a proprie- 
torship might be (a) simplicity of organization, (b) avoidance 
of filing fees or corporate fees, (c) the decisions of one 
person are terminal, (d) the net profits are not divided, and 
(e) others. The disadvantages may offset the advantages. 
For example, (a) limited capital, (b) success is by continuous 
personal attention, (c) all business liabilities are assumed 
by the proprietor, (d) the proprietor is responsible for all 
phases of business whether or not qualified, (e) growth of 
business is restricted to the energy and ability of the owner, 
and (f) additional capdtal is difficult to get. 

Many successful interior designers have operated under 

the proprietor-type of business. Ward Bennett reported in 

Interiors that he had enjoyed the freedom of this type of 

business for eighteen years. Ke had limited his clientele to 

six each year. He selected clients who presented the most 

2 



interesting challenge to his abilities. 



"The Business of Running a Business," Interiors , CXXV:2 
(Sept. 1965) p. 141-142. [That part concerning Ward Bennett] 



37 



Partnerships are classified as "general" and "limited" 
and the partners are listed as "general" and "special". This 
is an association of two or more persons as co-owners of a 
business. Their agreements are oral or written and are some- 
what regulated by State law. Three-fourths of the states 

have adopted the Partnership Act which was completed by the 

3 
Commissioners on Uniform State Laws in 1914. 

There are many questions one should ask before becoming 

4 
a partner, according to authorities, such as: 

1. Who may become a partner? 

2. What should a partnership agreement contain? 

3. How will profits and losses be divided between 
partners? 

4. Does i partner have a right to receive interest on 
capital? 

5. Does a partner have a right to receive interest on 
loans? 

6. What are the rights of indemnity and contribution 
of a partner? 

7. What is the liability of a general partner to cre- 
ditors of a partnership? 

8. What are the liabilities of a secret partner; dormant 
or silent partner? 

9. What is the liability of an individual as a partner 
although he has not entered into a partnership 
agreement? 

10. What is the liability of the members of a partnership 
for the malpractive of one partner? 

11. How does one manage partnership affairs? 

12. May one of two partners prevent his copartner from 
binding him by his acts? 

13. Has a partner power to borrow money or to execute 
negotiable instruments? 



John Wyatt and Madie B, Wyatt, A. B., LLV. Business 

Law : Principles and Cases ■ 2nd ed. New York: McGraw-Hill Book 

Company, Inc. 1963, p. 597-662. 

4 

Stanley M. Brown, Bus ines s Executive ' s Handbook . 4th 
ed. Englewood Cliffs, New Jersey, Prentice-Hall, Inc., 1957. 
p. 1134-1158. 



14. What is the power of a partner to collect 
partnership debts? 

15. What is the power of a partner to lease partner- 
ship property? 

16. Can a partner employ assistants? How? 

17. What is the power of a partner to purchase and 
sell personal property? 

18. What is the power of a partner to convey real 
property belonging to the partnership? 

19. May a partner engage in any other business? 

20. Is a partner entitled to compensation for his 
services? 

21. What is the power of a partner to execute instru- 
ments in the firm name? 

22. If a partner executes instruments in individual 
name, may a partnership be bound thereby? 

23. What are the partner's rights to information and 
inspection of books? 

24. When has a partner a right to an accounting? 

25. What is the duty of a partner to account for 
personal benefits? 

26. May one partner sue another partner? 

27. How can one expel a partner from the business? 

28. May a partner transfer his entire interest in 
the partnership? 

29. How does a partner withdraw from the partnership? 

30. How is a new partner admitted into the business? 

31. What is the liability of the incoming partners? 

32. What is the effect of death of a partner? 

33. What is the effect of bankruptcy of a partner? 

34. How does one continue a partnership beyond its 
fixed term? 

35. How are profits and losses divided upon liquidation? 

These are questions which might be asked about any busi- 
ness organization, in part, and as they might apply. 

A limited partnership is a modified type of partnership 
in which one or more persons, known as "limited partners" are 
partners with a "general partner" or partners. It is usually 
regulated by State law. It is a legally established business 
and filed as such. 



Wyatt & Wyatt, p. 659-662. 



39 



A corporation is the most complicated form of business 
organization. It is formed by a charter issued by the State. 
It requires three or more persons. It may be formed when out- 
side capital is required for a business if it is not desirable 
for those persons providing the capital to have active manage- 
ment of the business, although they do share in the profits. 
Laws vary and some professional persons are not permitted to 
form a corporation. Because a corporation is a legal entity, 
a qualified attorney at law should be selected to instrument 
incorporation. 

Most authorities in business organization advise that a 
qualified attorney at law be consulted when a business is to 
be organized. There are many references in public libraries 
which apply to business. It is advisable to read from new 
editions by authors recognized in the field of business. The 
publications of "schools of business" such as Harvard, Univer- 
sity of Pennsylvania [Wharton], and Stanford are accepted as 
excellent sources of information. Four business organizations 
are charted in Plate IX, page 

Federal. State, and Local Laws. Statutes. Ordinances, and 
Regulations Which Affect Business 

According to the A. I. D. Manual of Professional Practice 
it is advisable for the designer to retain legal counsel for 



Ibid , p. 663-764. 



40 



b 



fr- 


(Y 






e- 


• '- 


er 


6 



or 



a. 






a to — 



41 



clarification of the legal aspects of business. One doing 
business is responsible for abiding by all applicable laws 
and ignorance of the law is not defense. 

Laws applicable are federal, state, county, regional, 
municipal, and others. Taxes include income, sales, use, 
occupancy, and others which are further categorized by 
governing jurisdictions. Insurance requirements vary from 
state to state and may cover general liability, property 
damage, contractional liability, contingent liability, 
vehicular comprehensive, personnel insurance, installed pro- 
ducts insurance, and others. Workmen's Compensation Law 
varies considerably from state to state and an employer needs 
to be sure he is adequately covered in every respect. The 
advice of counsel may come from many sources such as the in- 
surance agent, many of whom are specialized, bankers, govern- 
ment agencies, and others. Some insurance is required by 
legal jurisdiction of public governing bodies and others may 
be required by a client. 

The designer is responsible for compliance with appli- 
cable zoning laws, ordinances, and codes. Part of the ser- 
vice rendered to the client is the assurance all legalities 
have been acceptably met. Copies of legal documents describ- 
ing these laws are available from the appropriate governing 
jurisdiction and they should be procured for study and reference. 



Arthur M. Weimer, Bus incss Administration : An Intro - 
ductory Management Approach , Rev. Ed. Komewood, Illinois, 
Richard D. Irwin, Inc., 1962 [Also see Appendix for additional 
sources of business information]. 






Accounts and bookkeeping records are subject to audit 
by government and insuring agents. An approved systen of 
accounting should be used by the office to make the informa- 
tion available when requested. [See Office Organization and 
Procedure, page 42 in following section]. 

It has been found that much general information and con- 
siderable specific information can be obtained from local, 
city, state, and federal agencies. Additional information 
is available from Chambers of Commerce, Better Business 
Bureaus, and various contractional associations. 

Arthur Weimer listed among sources for information 
libraries, business and financial sections of daily newspapers, 

o 

banks, loan institutions, trade and financial magazines. 

Office Organization and Procedures 

The size and type of office organization U6ed by designers 
and decorators was found to vary considerably. The office of 
a designer was not the same as the office of a decorator who 
was selling merchandise from a shop. Successful operations 
were found among all sizes and types of design business. 

Design offices of different sizes were compared by 
Indus trial Design . Of the fifty-seven offices selected, the 
majority had fewer than ten on the staff as designers. The 
number of design offices according to the size of the office 
is shown in Table I. 



9 

NUMBER OF DESIGN OFFICES ACCORDING TO SIZE 



Size of Staff Number of Offices 

2 to 5 26 

6 to 10 17 

11 to 15 5 

16 to 25 7 

27 1 

87 1 

The size of the office is dictated by the nature and re- 
quirements of the business and by the capital available for 
this use. Office management involves the physical plant, its 
personnel, and its functions. In general the operational 
functions of the office include space for reception, clerical, 
conference, drafting and/or samples, and package and/or stor- 
age. 

Both the Manual of Professional Practice and the Archi - 
tect ' s Handbook of Professional Practice offer much informa- 
tion on the setup and running of an efficient office. Many 



q 
"A Survey of Consultant Designers," Industrial Design , 
Vol. 13, No. 6 (June, 1966), p. 108-110. 



and Manual of Professional Practice . Ch . 2 



44 



other sources of information are listed under the references 
in the appendix. A good accountant or certified public 
accountant can set up a bookkeeping system which will ade- 
quately cover all necessary areas. The A. I. D. and A. I. A. 
substantiate the fact that business is an investment which 
should offer a promise of financial return. As it was pointed 
out in the Manual of Professional Practice : 

More than one-fifth of the retail businesses started 
in the United States survive less than one year and 
almost as many fail in the second year. Only one out 
of ten last as long as ten years. " 

Reasons given for failure were, poor management, inadequate 
financing, lack of good judgment, extravagance, high overhead, 
poorly kept records, assuming of credit risks which were either 
slow to pay or had the reputation for not paying, lack of 
business information, training, or lack of knowledge of sources 
of information. Efficient management is the major difference 
in profit and loss. 

According to A. I. A. and A. I. D. successful practice 
depends on three things: (1) design ability, (2) effective 
salesmanship, and (3) good business management. Design ability 
depends on training and education, experience, and natural 
creative abilities or talent. Salesmanship depends on person- 
ality, desire to please, and ability to inspire confidence. 



tion. " 

12 



See Appendix, p "References for Office Informa- 



Manual of Prof es s ional Practice . p. 77. 



45 



Good business management depends on strict adherence to es- 
tablished economic principles. 

According to Stanley Barrows, Parsons School of Design, 
one of the major objectives of training at that school is 
"to acquaint them [students] with business practices based 
on standard business procedures." Mr. Barrows further stated 
that additional training in business methods and procedures 

should be gained in specialized schools or under an apprentice 

13 
period of training. Many good books were located and are 

cited in the Appendix which offer further information on the 

subject . 

The records for a designer are of three types: (1) general 

office records, (2) client or job records, and (3) financial 

or accounting records. It is strongly recommended that a 

system of filing be set up, no matter how small the beginning 

business, that will be adequate and can be expanded to allow 

for business growth. A design business may wish to adapt one 

used by one of the professional organizations or one offered 

in the building trades. 



13 ii 

Barrows, "Future of Interior Design Education, 

Interior Design . (July, 1962) 

Appendix, Ibid , p. 

Manual of Professional Practice . loc . cit . 

Data Filing and Cos t Accounting . a document copy- 
righted by C. S. I., A. I. A., A. G. C., and C. M. S. C. I. 
Also see specific systems of A. I. D., A. I. A., A. G. C. , 
and others* 



46 



The Manual of Professional Practice suggested that the 
general office records should include correspondence, a chro- 
nological file, subject files, awaiting-reply file, delivery- 
pending file, catalog files, and clipping and reference files. 

Client or job records involve three types of items: (1) 
a client or job file including all correspondence, estimates, 
contracts, addenda, and memos pertaining to the specific job, 
(2) a material record file with samples, brochures, colors, 
and coverings of all work to be executed, and (3) a drawing 
file to hold tracings, sketches, and renderings, models, etc. 

Financial records are extremely important and are sub- 
ject to examination by tax authorities, insurance agencies, 
banks, and other auditors. They provide the necessary infor- 
mation to determine the condition of the business. 

At Interior Design 66 workshop for interior designers 
and decorators in September, 1966, emphasis was made on the 
importance of keeping a complete record of overhead costs for 
the purpose of allocating these costs to overhead charges 
against individual jobs. Unaccounted for overhead devours 
profit. Overhead includes cost of office space, utilities, 
cost of secretarial services, travel expenses, insurance, 
salaries, office supplies, time spent on estimating, time 
spent with salesmen, suppliers and research. 



Andrew Addkison, A. I. D., Chairman, "Commercial and 
Institutional Interior Design Workshop, University of California 
Extension/Berkeley, August 31-September 1, 1966. 63 decorators 
and designers discussed business practices important to suc- 
cessful operation. 






47 



Those designers operating a shop for sales of mer- 
chandise require more records and files than those who con- 
fine their business to design and contract. A system is re- 
quired to cover sales, inventory, purchases, memos and sam- 
ples, suppliers, and all additional services and goods pro- 
vided. This will also include sales personnel, shop fixtures, 
workrooms if required, provision for receiving, marking, 
storage and other facilities and space. Suggested minimum 
record requirements are indicated on the flow chart on Plate 
X. 

Good business practice, according to A. I. A. and A. I. D. 
dictate the importance of having an established office proce- 
dure program, no matter how small the business. Some designers 
have suggested that the procedures be kept in a notebook which 
makes additions, changes, and deletions simple. These policies 
should include the following points: (1) business hours, (2) 
lunch hours, (3) coffee breaks, (4) holidays, (5) paid or un- 
paid vacations, (6) absenses, (7) sick leave, (8) overtime, 
(9) wage provisions, (10) emergency leave, (11) severance pay, 
(12) hospitalization, (13) disability, (14) major medical, 
(15) retirement, etc., (16) withholding taxes and social se- 
curity, (17) jury duty, (18) deportment, (19) personal phone 
calls, (20) discounts on purchase for personal use, (21) pro- 
cedure for answering telephone, (22) receiving clients, (23) 
receiving salesmen, auditors, etc. (24) protection of fixtures 
and equipment, (25) drawings and reproductions, (26) "confidential' 



(27) office forms, and many other office procedures and 
policies as pertinent. The procedures should be edited at 
regular intervals to keep them usable. 

"A letterhead is the first requisite for any office" 

19 
according to the Manual of Professional Practice . The 

standard size is 8 1/2" x 11" and it can be used for many 

purposes. Business cards are generally a necessary item for 

20 
the designer. Invoices, statements, memos, painting and 

decorating schedules, and other miscellaneous forms which 

require three or four copies for adequate use and proper 

filing may be prepared more economically on less expensive 

paper. These forms may be purchased from printers, suppliers 

of stationery, or copyrighted forms are available from A. I. D. 

for their own membership. Sample colored purchase order forms 

21 
are illustrated in the appendix. Each color may be used to 

indicate its filing location and the color is used consis- 
tently for many types of forms such as sales slip, work order, 
estimate, or other individually selected forms. 



Manual of Professional Practice , p. 82-88 and Hand - 
book of Professional Practice , Chapter 6. 

19 

Manual of Professional Practice , p. 88 

20 

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50 



It has been recommended Chat the designer establish an 
office or studio shop which would reflect the proper image to 

prospective clients. The address and the decor of the office 

22 
may be important for establishing the desired image. 

The relation of the designer to others in the office or 

shop is important. Josephine Houck had this to say: 

In the office treat all the same, be fair and 
helpful to any who ask advice, but do not be a door 
mat. Admit any mistakes. Your valuation of self 
often governs the value others place on you. 

With relation to those under you such as im- 
porters and wholesalers, remember that all are 
selling to you, all are efficient and business-like. 
If you are fair, friendly, and courteous, you will be 
treated so in return. Don't be high-handed and bossy. 
They are trained in their work, so respect their 
knowledge. Be willing to be guided by what you are 
told while inexperienced, for those in business are 
mechanics. Never lose your temper and never call 
down a workman before a client. " 

Financial Aspects of Business 

Capital is necessary for every type of business and is 
of two kinds. There is the capital which is tangible and 
covers money, bonds, stocks, and other securities such as 
real estate. There also is intangible capital which in- 
cludes accumulated stock of knowledge, skills, and know-how 

24 
which may play quite as important a role in economic growth. 



22 

Interior Design 66 Workshop , University of California 

Extension/Berkeley. August 27-September 9, 1966 

23 

Josephine Houck, Germantown, Pennsylvania. Part of 

a lecture given to students at Moore Institute of Art in 1939. 

24 

Richard T. Gill, Economic Development : Past and Pre - 
sent . Englewood Cliffs, New Jersey, Prentice-Hall, Inc., 1963, 
p. 10-11. 



51 



Design talents are assumed intangible assets of the de- 
signer who starts his own business. Adequate financial assets 
are required to cover the cost of ownership or rental of an 
office or shop, taxes and license fees, inventory and stock, 
salaries and wages, purchase of equipment and material, util- 
ities, stationery and printing, contingencies, and in addi- 
tion there must be sufficient cash to cover all work in pro- 
gress between client payments. Banks and other financial in- 
stitutions make money available to start a new business or to 
expand an existing business. The proprietor is expected to 

have from two-fifth to four-fifths of the total capital re- 

25 
quired depending on the nature and prospects of the business. 

A checking account at a bank is essential for anyone 

doing business because practically all business accounts are 

paid by check. The account is necessary for establishing 

credit with wholesalers and suppliers, and it is invaluable 

for establishing a credit rating. Jobbers and suppliers of 

merchandise and materials can offer much valuable assistance 

and will tell what their terms for purchase are. Credit 

agencies assign ratings to businesses which are of value to 

the designer. Dun & Bradstreet, Inc. is a general mercantile 

agency which lists almost three million enterprises in the 

United States and Canada. Lyon Furniture Mercantile Agency, 

New York City, is a special trade agency which confines reports 



25 

Manual of Professional Practice . p. 92-93. 






to manufacturers, wholesalers, and retailers of interior fur- 
nishings. Some parts of the United States rely heavily on 
the credit ratings of these firms and credence should be 
given to their findings. 

The establishment of credit rating by one firm illus- 
trates what is true for many designers. The firm of Ward and 
Ward was started in Colorado in 1947. It was strictly a con- 
tract design business which had its beginnings with a minimum 
bank account and no established credit rating. Fabric houses 
asked for the name of the bank and the size of the bank account 
for that initial start. Credit was allowed on a thirty day 
basis with a discount allowed for payment in ten days. The 
firm took advantage of the discount and thereby started its 
credit rating. 

The firm moved to Las Vegas, Nevada, during December of 
1949. New suppliers were used and credit had to be established 
once again. Copies of the letters received from seven of the 
suppliers are included in the appendix. One of the seven did 
not ask for any references. This was the Lun On Company , im- 
porters, located in San Francisco. One company, The S. M. 
Hexter Company of Los Angeles, requested a Dun & Bradstreet 
or Lyons listing if it was available. All asked for bank 
references and listings of firms with whom there were active 
accounts. Some of the firms enclosed forms for submitting 
financial statements. 



26 Ib_id. p. 113-114 



53 



By prompt payment; of bills the credit rating for this 
firm has improved and it reports that it rarely is asked to 
submit a financial statement to a supplier at this time. Fi- 
nancial statements are still requested periodically by banks, 

27 
insurance agencies, and bonding companies. 

Allocation of Job Costs 

Job costs for the designer include all time and material 
spent on that job plus a percentage of the general overhead 
expenses, travel time, and expected profit. Estimated job 
costs must also allow for a margin of error in the estimate. 

Job costs for the designer with a shop include all time, 
material, merchandise, workroom costs, sub-contract costs, 
delivery and shipping costs, plus a percentage allowance for 
general overhead expenses. 

No formula was found which would apply to all businesses 
or to all jobs within the scope of one firm. In the shop 
where major income was derived from the sale of merchandise, 
the mark-up of that merchandise had to be sufficient to allow 
for all overhead and profit without over-pricing. Outstanding 
service and quality control justified higher mark-up. 

Designers frequently computed charges on an hourly basis 
whether or not they billed in that manner. The hourly rate 
included the design time and all overhead expenses computed on 
an hourly rate. 



27 

Ward and Ward, Contractors-Designers, Las Vegas, 

Nevada. Copies of the letters cited are to be found in the 

Appendix, p. 124 . 



54 



In a lecture given before the New York Chapter of A. I. D. 
Isabel Barringer, A. I. D., presented her procedures for allo- 
cating job costs. Her conviction that good accounting prac- 
tices are necessary was emphasized by the presence of her 
accountant, Seymour Laskow, CPA, who collaborated with her. 
Miss Barringer projected specific methods which she had found 
to be successful. She said, "in a well-run office, for every 
dollar that goes to salary, the second dollar must go for 
overhead, and the third dollar should be profit for the part- 
ners minus approximately 15 percent for promotion and direct 
costs not rebillable." She further explained that there should 
be a preliminary advance fee, usually 10 percent of the total 
estimate, and 15 percent advance for institutional or large 
jobs requiring very large purchases. Her suggested method of 
payment was to require one-third payment at acceptance of the 
budget or estimate, one-third when major purchase orders were 
made, and one third on completion or installation of the job, 
which she said was the hardest to get. She emphasized the 
importance of accounting for travelling expenses which could 
run high. There was some discrepancy in her procedures unless 
she did not expect payment when she submitted invoices to her 
client, for she said, 

Monthly invoices should be submitted to the client 
showing the amount of time spent to date with a covering 
letter advising the client as to the state of completion 
of the job at that point. In the contract we always in- 
sert a statement that in the case of strikes, catastrophes 
of a manufacturer where we have no control, we are not 
responsible for non-delivery. In the supervision of ~ny 



55 



painting or electrical work, or such where there is 
no profit we work on an hourly basis — no "upset" 
price All expenses for blueprinting, long dis- 
tance telephone calls, transportation, petty cash, 
expenses necessary to the prosecution o_f the job 
are billed to the client monthly with an itemized 
statement. Note on travelling: on all private jobs 
we charge travelling expenses plus a per diem rate 

based on the above charges If contract is to be 

broken, drawings etc owned by designer and must be 
purchased by client. This is in the contract. If 
designer terminates, billed for work completed and 
will be completed under supervision. 

Miss Barringer had other suggestions concerning job costs 
and accounting of these costs. She called them Tools o_f the 
Trade [her underline] and roughly listed them as follows: 

1. Time sheet - work done, time and date, keep daily, com- 
pute weekly, bill monthly. 

2. Copy of order. In triplicate for residential. Each item 
cost annotated, sent to client for signature and authori- 
zation to proceed. Billed for 50% of the order. 

For commercial - purchase order sent to client accepting 
financial responsibility for merchandise. 

3. Purchase order - institutional work. One for client, one 
for designer in client file. Vendor sends invoice to de- 
signer to OK for payment. Designer checks for accuracy 
and forwards to client for payment. 

4. Invoice, in triplicate. Original to client, duplicate 

to bookkeeping department of designer, third to designer': 
file. Invoice is order to pay designer, which goes to 



56 



designer and client. Control is numerical, not by client's 

name. (Daybook keeps track). 

In estimating hourly cost in relation to staff 
salaries, it is important to bear in mind that the 
annual salary is not earned in payment of 365 days 
work but 220 — deducting legal holidays, two weeks 
vacation, and twelve legal sick days. Twelve is 
contingency. 

Yearly overhead is prorated on the final balance 
sheet from the books set up by the accountant against 
the volume less purchase. 

Note on Taxes : In the case of merchandise sold at 
retail the accountant should be specifically instructed 
not to use the gross sale but the gross profit, i. e. 
difference between wholesale and retail. Otherwise the 
designer will be forced to pay tax on moneys given to 
the vendor and not money earned by designer." 



Labor and Material Suppliers 

Isabel Barringer said that "as designers all we have is 

30 
talent and time to sell." A good portion of the talent re- 
quired is knowledge of products and materials and where and 
how they are available. This involves knowing sources of pro- 
ducts, materials, services, skills, and labor and further 
knowing the terms under which they may be obtained for de- 
signing, decorating, and furnishing interiors. 

Location in large metropolitan areas provides access to 
the majority of suppliers required. Increased experience will 



Appendix, p. (Sample purchase orders in multiple 
color) . 

29 Isabel Barringer, Interiors , CXXIV:S (March, 1965), 
p. 144-145. 

Ibid. 



57 



provide a list of select suppliers. The yellow pages of the 
telephone directory are a good source of the names of area 
suppliers. Actual contact with and recommendations of a 
supplier will determine final selection. A sample of the 
many services and products available through the yellow pages 

is given in the Appendix with a partial listing of suppliers 

31 
found in the Los Angeles telephone directory. 

Trade magazines carry both the advertisements and the 
editorials concerning what is available on the national and 
international market. All designers should subscribe to at 
least a few trade magazines and newspapers to keep informed. 
Magazines which may be of value are Interiors , Interior 
Design . Industrial Design , Antiques , Contract , Architectural 
Forum . Architectural Record . Architectural Design , Architec - 
ture/West , and Home Furnishings Daily , a trade newspaper. 
Some of the foreign magazines are excellent. Some magazines 

have directories of their advertisers which makes purchasing 

32 
easier for the designer. 

Designers located in smaller communities will be required 

to go to larger, regional metropolitan markets for much of 

their material. Current Sweet's Catalog and A. E. C. Catalog 

are helpful when trying to locate unfamiliar products. 



3 1 

A selected list of services, suppliers, and materials 

from the yellow pages of the Los Angeles Classified Telephone 
Directory , Pacific Telephone Company. Published frequently and 
periodically. 

32 

Purchasing Directory of America s Great Sources , 

Interiors magazine publication is one example. 



■ 

58 

The "trade" includes manufacturers, wholesalers, dis- 
tributors, suppliers, workrooms, and craftsmen. The safest 
and ultimately the most profitable procedure is to engage in 
business only with the most reputable tradesmen. This does 
not imply size but it does mean consistent quality of work- 
manship, craftsmanship, material, and business ethics. It is 
poor practice to deal with an unknown tradesman without making 
personal investigation or accepting favorable recommendations 
from several fellow professionals, if they will relinquish 
the information. Reputable wholesalers protect the designer, 
do not sell directly to the client, and do not sell the same 

specialty merchandise to other designers and merchants in the 

33 
vicinity for a certain time limit, usually thirty days. 

When selecting the artisan, who may be an upholsterer, 
draper, paper hanger, painter, cabinetmaker or finisher, 
select the individual or firm who is a skilled craftsman, has 
business integrity, and is financially stable for best re- 
sults. The contract for work done with these artisans is no 
more valid than the integrity and skill of the firm, so it is 
important that caution and care be exercised here. Artisans 
are usually contracted locally with the exception of a few 
specialties, wherein the manufacturer may supply or designate 
his own craftsmen for installation. If at all possible visit 
the shop or workroom to appraise the facility, type and quality 



33 

Manual of Professional Practice , p. 112. 



of work done, how handled, thoroughness of the craftsman's 
review of specifications. Obtain information on bank refer- 
ences, previous work done for other designers, whether or not 
it is a union shop, name of his major supply house. This 
supplier may also be a good source of information concerning 
the shop s credit. 

Under "Financial Aspects of the Business" it was pointed 
out that it is important for the designer to establish his 
own credit rating for perusal of clients, financial institu- 
tions, and persons or firms with whom he does business. It 

is at least as important that the designer establish the cre- 

35 
dit reliability of the prospective client and tradesmen. 

All requests and applications for merchandise and work 

to be done should be consummated with a written "purchase 

order". Frequently orders are made verbally or by telephone 

but they should be promptly followed by a written purchase 

order which has an assigned number. Purchase order numbers 

follow in sequence of purchase and not by job number. The 

purchase order should carry the name or number of the job or 

client to simplify bookkeeping and accounting. The supplier 

notes the purchase order number on the invoice supplied with 

merchandise delivered. This constitutes a contract between 



34 



Ibid. 



35, 



3b 



Ibid. 



the supplier and designer. A purchase order which does not 
denote the total cost or the unit cost indicates an open order 
and makes the designer responsible for whatever charge is 
made. If the supplier gave a quotation, which in turn is 
noted on the purchase order, and the supplier fills the order, 
that price holds even though it might have been in error. If 
the quote was in error, the designer should be so advised be- 
fore filling the order. 

Each designer will select his own order forms and other 
forms necessary to conduct his business efficiently. Rough 
schematic forms are illustrated in the Appendix. 

In some areas where unionization is strong, careful con- 
sideration should be given by the designer before using non- 
union labor if it constitutes infringement upon union nego- 
tiations and arbitrations. Adherence to these policies is a 
safeguard toward the smooth operation of a business with its 
union affiliations. 

A designer doing contract work frequently is required to 
sub-contract portions of work to other trades. If he is in 
effect the general contractor for all work, he is responsible 
for the sub-contract work. It is necessary for him to select 
sub-contractors carefully with due regard for their financial 
stability, quality of workmanship, and general adherence to 
business details necessary. With experience he will ultimately 
have a selective list of sub-contractors who will perform work 
satisfactorily to his specifications. 



61 



CHAPTER IV 

SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS ■ 

Industry has expressed concern that student interior 
designers are receiving little or no training in business 
practice and procedure. Business practices of professional 
interior designers and sources of additional business infor- 
mation that would be helpful to the designer were investigated. 

Summary 

Interior designers were found to be in many diverse types 
of design business that were classified in three general 
groups, (1) design, (2) contract-design, and (3) merchant- 
design (designer with a shop). Business organizations con- 
sidered were proprietorship, partnerships, and corporation; 
and very few designers had large firms. Designer services 
covered all aspects of design, client relationships, and 
business procedures. The interdependency of these services 
requires utmost attention to each detail for ultimate and 
complete success. 

Costly business failures are a waste of human talent, 
time, and effort. Bankruptcy consumes ninety percent of all 
businesses before they have existed ten years, and this failure 
is directly related to poor business practices. Industry has 
rebelled against the inexperienced designer who is compelled 
to experience an expensive trial and error period while 



62 



learning business methods even Chough his design talents may 
be considerable. The Interior Design Educators Council has 
recommended that the student be assigned four to five percent 
of his course work in professional practice, but there was no 
indication that the student is getting that much exposure to 
business. A few students in the New York City area enjoy a 
fine apprenticeship program, but there is no evidence that 
this is a universal practice. The students who have gone into 
industry have not impressed the industry with their knowledge 
of business. 

The list of business practices selected for this study 
was extensive. Many sources for additional business infor- 
mation were cited in the bibliography and appendix. The study 
suggests questions that need to be answered. Have sufficient 
sources of business information been given to help the be- 
ginning interior designer? Could a list be so selected and 
so refined that it would be a brief resume of most of the 
business information the designer would require? 

Financial success was dependent on many things which in- 
cluded sound business practices. The interior designer is a 
professional person who must affiliate and associate with 
fellow interior designers as well as architects, engineers, 
environmental planners, and other professional people. A 
satisfied client was paramount for continued design success, 
because the client, consciously or unconsciously, influenced 



63 



potential clientele. Total design service was a business 
arrangement which involved expert human relationships, perhaps 
psychology, to fulfill client requirements without altercation. 
Complicated business procedures were involved when the interior 
designer was required to furnish materials, or when he was 
required to contract services. Today's business revolves in 
a sophisticated economy and the designer who is also a con- 
tractor or a merchant must be an active participant in this 
economy. 

Increasingly the interior designer's client is a repre- 
sentative of an entity such as a large corporation, a bank, 
a school board, a government agency, a municipality, or an 
industrial complex. This client is well-schooled in business 
procedures. A basic comprehension of and adherence to sound 
business principles was found to be an important function of 
the total designer services rendered to a knowledgeable 
client. Successful designers have accepted this responsibility 
and provided the client with a total interior environmental 
design solution that included adherence to all involved legal- 
ities and the selection of materials and services of the 
highest quality and design execution within an allowed budget. 

Designers quoted in this study included eighteen who 
have been recognized by the trade journals as successful con- 
tributors to the profession. In addition, the study included 
work of three national interior design professional organiza- 
tions, recommendations of the Interior Design Educators 



64 



Council, procedures considered by the sixty-three recognized 
interior designers who attended Interior Design 66 , and the 
statements of at least six other experienced professional 
people who offered suggestions. Indirectly, others were in- 
volved. Most of the information was accumulated from the 
trade journals, the American Institute of Designers' Manual 
of Professional Practice and the American Institute of 
Architects' Handbook of Professional Practice . 

The selected designers handled large sums of money, 
needed operating capital, and were required to buy and sell 
materials and services. Whether the success of these designers 
has been due to extraperceptive design and business acumen 
or whether it has been because of intensive training, appren- 
ticeship, and experience was not learned. Some did indicate 
that they had had extensive apprenticeship training. What 
other business exposure they had had was not learned. 



Conclusions 

Sufficient information is available to give students 
training in basic business procedures ana practices. For the 
growth and stature of this profession, an expedient and con- 
certed effort should be made to establish, as far as possible, 
standard business practices to comply with the demands of 
industry and the needs of inexperienced interior designers. 
There is an urgent need for the student designer to be exposed 
to business law and further exposed to business practices, 



65 



systems of ordering, and observation and participation in the 
action of making. Many services require legal clarification. 



Recommendations 

Professional interior designers and interior design 
educators should accelerate efforts toward the prompt 
establishment of standard business practices. Schools should 
include business and professional practice in the undergraduate 
curriculum, or if such courses exist, they should be upgraded 
to meet the impact and acceleration of sophisticated business 
practices in the industry. Expedient measures should be taken 
to provide a selective apprenticeship program for the student. 
This program should be structured with the cooperation of ex- 
perienced interior designers and those in the industry who 
practice acceptable business procedures. Business law should 
be a course requirement to acquaint the student with legal 
counsel available and sometimes required. 



SELECTED BIBLIOGRAPHY 



6 7 



SELECTED BIBLIOGRAPHY 



Architect 's Handbook of Professional Practice. Washington, 
D. C. : American Institute of Architects, 1964. 

This handbook is published for the membership of the 
American Institute of Architects and is the guide for all 
of their business and professional work. It contains 
many sample forms to be used. It is to be found in many 
public libraries. Although it is written specifically 
for the. architect, it has many useful sections for the 
interior designer. 

Aurner, Robert R. and Paul S. Burtness. EjEfecJ^ivja English f_or 
Busi ness . Chicago: Southwestern Publishing Co., 1S')2. 

Basic principles of business English. Special appli- 
cations for style, simplicity, sales messages, credits 
and collections, with a reference guide. Emphasis on 
courtesy, completeness, clearness, correctness , concise- 
ness, and concre teness . 

Ball, Victoria. Opportunities in Interior Design and Decorating . 
Hew York: McMillan, 19637 (Vocational Guidance Manuals) 
Includes discussion of the development of the work, 
future outlook, qualifications, preparation, oppcrtuniti.es, 
how to get started, and covers some related fields. Gone 
for counselling. 

Anderson, Ronald Aberdeen. B u siness Law. Universal code vp/lurae. 
7th (d. Cincinnati: Southwestern Publishing Company, 1964 

Bach, George Leland. E conomics : An Introduction to Analysis 

and Policy. 5th ed. Inglewood Cliffs, New Jersey: Prentice- 
Hall"," Inc. , 1966. 

Written by the Professor of Economics at Carnegie 
Institute of Technology. Covers the political economy 
here and abroad relative to business, government, and 
poverty. 

Ball, J. and C. B. Williams. Report Writing . New York: The 
Ronald Press Company, 1955. 

A guide for business men and engineers. There are 
chapters or. the organization of facts and ideas, writing 
and revising, language, style, and visual aids. There 
are brief, wall-selected supplemental readings by other 
authors which are pertinent and interesting. 



68 



Bass, Stanley M. Leadersh ip , Psyc hology and Organ izational 
Beliavior. New York: Harper and Brothers, 1960. 
A psychological look at management. 

Brown, Stanley M. editor. Busine ss Execu tive ' s Handbook , 4th 
edition. New York: Prentice-llall , 1957. 

A reference book for management with policies and 
procedures. Used as a reference in this study. 

Bursk, Edward C. , Clark Donsedt, Ralph W. Hidy. The Worl d of 
Bi.sine s? . New York: Simon and Schuster, 1962. <\ volumes. 

A selected library of the literature of business from 
the accounting code of Hammurabi to the 10th century 
"Administrator's Prayer." Edited with commentaries and 
notes by three members of the faculty of the Harvard 
Business School. 

Coman, Edwin T. Sources of Business Information . Berkeley and 
Los Angeles: University of California Press, 1965. 

Contains much basis information and weans for ob- 
taining hard-to-find statistics and special information. 
lias a bibliography for each topic. A helpful book to o:ro . 

Craf, John Riley. Intro duction to Business . New York: Henry 
Holt and Company, 1957. 

Covers major areas of American business and how it is 
organized and operated. Vocational information is in- 
cluded. 

D?le, Ernest. The Great Orga nizers . New York: McGraw-Hill 
Book Company, Inc., 1966. 

A review of the success of some big companies. 
Emphasizes that the social, political and government 
organizations we belong to are important for business 
success . 

Dickinson, A. Litchard. Filing and Finding in the Offic e. 
Elmhurst, Illinois: The Business Press, 1964. 

A well illustrated book, simple language, which might 
be of assistance to the organization of an efficient 
office. 



Dyei , Frederick Charles, Ross Evans, Dale Lovell. Putting 

Yourself over i_n Business . Engjewood Cliffs, New Jersey: 
Prentice-Ball, 1957. 

The best book rend on business relationships. Worth- 
while reading even for the experienced person. Written 
in an easy style, suitable for the student. 



69 



Folts, Franklin E. Industrial Mana gement; Text , Cases , and 

Problems . Now York: McGraw-Hill Book Publishing Company, 
Inc., .1963. 

Some theory, mostly cases and problems. Interesting 
reading but too much for general information on short 
order. Folts is Professor of Industrial Management, 
Emeritus, Graduate School of Business Administration, 
Harvard University. 

Garrett, Thomas M. Business Ethics . New York: Applcton- 

Century Crafts Division of Meredith Publishing Company, 
1966. 

A paperback covering the moral and legal ethics of 
business, relationships within and outside of the firm, 
includes right to work section. 



Gates, James, and Harold Miller. Persona l Adjustment tp_ 

Business ■ Englewood Cliffs, New Jersey: Prentice-Hall, 
Inc., 1958. 

Covers selecting a career, employer's appraisal, 
appearance, how to get a job, applications, interviews, 
the first six months on the job, how to prevent failure, 
etc. Section on going into business, skills, when, re- 
wards, personal qualifications and financial qualifications. 

Gill, Richard T. Eco nomic D evelo pment: Past and Present . 

Englewood Cliffs, Hew Jersey: Prentice-Hall, Inc., 1963. 

Broad coversge of economics with section describing 
capital requirements of business. 

Greer, Michael. Your Future in Interior Design . 1963. 

Stresses the training and knowledge required for 
skill in participating in this creative field. For the 
student. 

Forrester, Gertrude. Occup ational Literature . An Annot ated 

Bibliography . New York: H. H. Wilson Company, 1964. 

Good coverage for the counselor or student. 

Farnum, Royal B, The Fine and Applied Arts ■ Bellman Pub- 
lishing Company, 1958. 

Discussion of the kinds of work, qualifications, re- 
quirements, and opportunities for the designer and artist. 
Includes forty occupations and backgrounds. 

Handbook of Business Forms . Compiled by the editorial staff. 
New York: Prentice-Hall, Inc., 1953. 
Illustrated. 



70 



Holden, Donald. Art Career Gui de. New York: Watson-Guptill 

Publications, Inc., 1961. 

Broad discussion of the field of art, with section 
devoted to interior design. 

Howard, Bion S., and Miller Upton. In troduction to Busin/:: 
Finance ■ New York: McGraw-Hill Hook Company, Inc., 1903. 
A general review of the subject of business finance. 
Covers credit Joans, intermediate and long-term financing. 

Kappel, Frederick R. Vitality jrn a business Enterprise . Ee» 

York: McGraw-Hill Book Company, 1.960. 

A series of lectures given at the Graduate School of 
Business of Columbia University by the president of the 
American Telephone and Telegraph Company. Mr, Kappel said 
that there is very little in the literature of management 
which has helped him. 

Keller, Isaac Wayne. Management Accoun ting for Profit Co:' : il_. 
Sew York: McGraw-Hill Eook Company, Inc., 1957. 

Accounting for material and labor. Standard costs, 
administration, buying, leasing, and other managerial 
aspects . 

Knox, Frank M. The Knox Standard Guide t_o D esign jmd Control 
of Business Forms . New York: McGraw-Hill Book Company, 
Inc. , 1965. 

Expresses continued need for standard business 
accounting because electronic data processing has not 
eliminated the need yet. 

Koontz, Harold, and Cyril O'Connell. Principles of Manage 

3rd ed. Hew York: McGraw-Hill Book Company, Inc., 1964. 

Textbook on Management written by Koontz of, the 
Graduate School of Business Administration, University 
of California at Los Angeles. Contains principles, analy- 
sis, planning, policy-making-organizations, staffing, 
communication, control and techniques. 



Lasser, Jacob Kay 



to Run a Small Business. New York: 



McGraw-Hill Book Company, Inc., 1963. 

A guide for the small Dusiness man or: management , 
financing, taxes, accounting, insurance, office manage- 
ment, promotions. Sections on how to ^ t o into business, 
r/iii aging and operations, retailing, wholesaling, manu- 
facturing, credit, installment selling, inventory, cost 
control , etc. 



71 



Lewis, John P. Business Conditions Analysis ■ New York: McGraw 
Hill Book Company, Inc., 1959. 

Considered an outstanding book in the field of general 

business but found to be much too involved for the layman. 

Lusk, Harold F. Busine ss Law: Principles and Cases. 6th ed. 
Homewood, Illinois: Richard D. Irwin, Inc., 1963. 

Occasionally in business it is helpful to read about 
similar cases in law. This could be useful for that 
purpose. 

Milroy, Robert R. and Robert E. Balden. Accounting Theory and 
Practice - Introductory . Cambridge, I'iiss achuse t ts : River- 
side Press, Houghton Mifflin Company, I960. 

Considered an excellent textbook by some. Written by 
Professor of Accounting, School of Business, Indian;. 
University. Gives basis of accounting, entries, three 
business types and accounting for each. Includes invest- 
ments, payroll, taxes. 

Ruffner, Frederick R. , Jr., editor. Encyclopedia of Associa- 
tions , Vol. 1, Rational Organizations of the United States. 
Detroit, Michigan: Gale Research Company, 1964. 

A complete listing of professional, trade, and other 
associations which makes it easy to find where the national 
headquarters are located and what the membership is. Found 
in most libraries. 

Simon, Herbert A. The New Science oJ_ Managem ent Decision . New 
York: Harper and Brothers, 1960. 

A lecture approach to the subject of man versus the 
electronic age. Short. 

Samuelson, Paul E. Economics: An In troductory An aly sis . Jth 
ed. New York: McGraw-Hill Book Company, Inc., 1961. 

Used as an economics text. Explains the accounting 
process, business organization, and income. 



and Jacob Klein, Ph.D. Introduction 



Spongier, Edwin H. Ph . D 
to B_us i ness , 4th e d 
Inc. , 1955. 

Introduction to modern business with 



New York: McGraw-Hill Book Company, 



good reference 

list. Covers organization, finance, industrial management, 
accounting, taxation, insurance, industrial and economic 
pi -inning . 



72 



Spriegel, William R. Principles p_f Business Organization and 

Operation . 3rd ed. Englewood Cliffs, New Jersey: Prentice- 
Hall Inc. , 1960. 

Lengthy but good. Gives tha accounting equation, 
methods, etc. Covers business organization, ownership, 
starting a business, financial aspects, risks, personnel, 
etc . 

Taintor, Sarah Augusta. The Secr etary ' s Handbook . New York: 
Tiie Macmillan Company, 1958. 

A guide for the secretary giving information on 
letter-writing, usages, telegrams, cables, English usage, 
spelling, minutes, resolutions, etc. 

Weimer, Arthur M. Busin ess Adminis tration : An Intr oductory 

Managemen t Approach . Rev. Ed. Homewood, Illinois: Richard 
D. Irwin, Inc., 1962. 

A basic text, easy to read, good bibliography. Covers 
types of business firms, organization, accounting, eco- 
nomic guides, capital, location of business, legal aspects 
of business, government controls, international business. 
Each chapter preceded by an outline of the chapter and 
there is a summary at the end of the chapter, also sug- 
gested readings. 

Wilcox, Clair. P ublic Policies Toward Business . Rev. ed. 
Homewood, Illinois: Richard D. Irwin, Inc., 1960. 

Much detail including historical review of govern- 
ment and political conditions affecting business. 

Wright, David McCord. Democracy and Progres s ■ New York: 
Macmillan Company, 1948. 

A paperback book on capitalism. 

Wyatt, John and Madie B, Wyatt. Busines s Law : Principles and 
C_ases_. 2nd ed. New York: McGraw-Hill Book Company, Inc., 
1 963 . 

Broad coverage of business law. 



PERIODICALS 



Allen, Barbara J. assoc. ed. "Profiles of Consultant Design 
Offices: Henry Drey fuss." Industrial Design , Vol. 13, 
No. 6 (June, 1966), 46-48. 

An article concerning a few selected design offices 
and some of the problems they have. It was said, "No 
natter how well-trained and educated the new designers 
arc, the office finds that it takes about six months for 
the inexperienced designer to become a useful member." 



Barrows, Stanley. "Future of Interior Design Education in the 
Age of Specialization," Interior D e s i g n , (July, 1962). 

In this article about teaching business practice to 
students Mr. Barrows had this to say about the Far sons 
School objectives: 

"To acquaint them with business practices based on 
standard business procedures. The students are made to 
realize that a visual presentation is just a part of the 
total problem of selling the idea. A good verbal pre- 
sentation is an enourmous asset to the interior designer.. 
To help them acquire a knowledge of materials and sources 
through visits to factories, showrooms, and special ex- 
hibits.... 

"Business methods vary greatly from firm to firm and 
it: would seem better for the student to learn these 
through experience with his future employers...." 

"The Business of Running a Business," Interiors , CXXV : 2 , 
September, 1965, p. 141-142. 

Concerning Bard Bennett who works alone in his design 
business, limits clients, has a telephone answering ser- 
vice and a secretary one afternoon per week. Has no 
publicity nor promotional services and no overhead beyond 
his own expense. 

Bennett, Ward, (concerning) "The Business of Running a Busi- 
ness," Interiors , CXXV:2, September, 1965, p. 141-42 . 
see "The Business of Running a Business". 

Draper, Elizabeth, (concerning) "The Business of Running a 
Business," Interiors , CXXV:2 September, 1965, p. 143. 

Elizabeth Draper explains how her business, which is 
50% residential and 50% contract operates. She is 
definite in her statements about the proper size of a 
designer's business, how it should be run, importance of 
publicity through "word-of-mouth" and other business 
aspects . 

(editorial) I nteriors , (April, 1967), p. 99. 

A discussion of apprentice training in interior de- 
sign. 

Lee, Tom, Ltd. (concerning) "The Business of Running a 

Business," In teriors , CXXV : 2 , September, 1965, p. 142. 

One of the few design firms which retained a public 
relations firm on a full-time basis. Gave the basis for 
charging. 



74 



"licensing", Interiors, (June, 1907), p. 20. 

A discussion of some of the latest developments in 
the profession toward universal state, licensing laws. 

Kalino, Emily, Associates, (concerning) "The Business of 

Running a Business," Interiors , CXXV:2, (September, 1965) 
p. 141. 

Business 10% residential the rest commercial and 
industrial. Explanation of client relations, contract;'., 
publicity, division of time, and fees. 

Planned Office Interiors, (concerning) "The Business of 

Running a Business," Interiors , CXXV:2, September, 1965, 
p. 143', 217-18. 

Spends half of the time on business and administra- 
tion . 

"Corporation Staff Designers: Index Studies on Nine Corpora- 
tion Staff Designers," Interiors , CXXV:12, July, 1966. 
In addition to employment as designers per se, de- 
signers were found to be employed by many corporations 
in business other than design. Records were kept by store 
bookkeeping departments. Business paperwork, very diffi- 
cult, voluminous proportions. Contracts and the terms of 
contracts often required. 

Draper, Lede. "The Professional Speaks Out," Inte rior Design , 
July, 1964. 

The business of practicing interior designers, handlers 
of vast sums of money, specifying costly materials and 
furnishings, requires business acumen and judgment. 

"For Your Information," Interiors , CXXVI:9, April, 1967, p. 8 
Art schools and universities seeking qualified 
teachers have requested graduate training to meet educa- 
tional requirements. Pratt Institute, Brookly, 8. Y. has 
just launched such a graduate program leading to Master 
of S cience . 

"For Your Information," Interiors , CXXVI : 9 , April, 1967, p. 8.. 
"Jobs and Careers." Full time employment in the New 
York City area is being offered to graduating interior 
design students of that area before they actually graduate. 
This is in keeping with th? growing trend toward appren- 
ticeship for graduates so that they will be trained on 
the job both in practice of design and business practice. 

Freedgcod. "Odd Business, This Industrial Designer." Fortune , 
February, 1959. 

A description of the world of business for an indus- 
trial design . 



75 



Gray, A. W. , "Time in the Life of a Contract," Purchasing , 
60:90-1, March 24, 1966. 

Some considerations for the contract document, 

Gueft, Olga. (editorial) Interior;; , CXXVI:9, April, 1967, p. 
99. 

Graduating; interior designers are not getting jobs as 
fast as those in other professions. It may be due to his 
untried and unproven design ability and his lack of busi- 
ness practice . 

Gueft, Olga, ed., "The Contract Bandwagon and Intercon I," 
Interiors , CXXVIi't, November 1966, p. 87. 

A great change has come over the interiors field as 
shown by the organization of special markets and special 
conferences aimed specifically at the contract industry. 
Some design schools are organizing contract courses. 

Hosansky, Eugene A. "Pragmatic Approach to Design - Walter 
Dorwin Teague Associates," Indus t rial Des ign. Vol. 13, 
No. 6, June, 1966, p. 54-59. 

Del Giudice of this firm says that a designer is a 
potential manager in that firm. He must be able to work 
as a team and yet be able to assume end responsibility 
when required. 

Lerncr, Lawrence and John Anderson, editorial contributors, 

"The Educational Problem," Contract , April, 1965, p. 69-7.1. 

Stresses that the student is given little or no 
training in business which is necessary knowledge for 
contract- design »ovt. 

Murphy, John C. "The Professional Speaks," Interior Design , 
July, 1964. 

Customer relations and preparation of estimates are 
two areas in which beginners need further training. 
Interior design schools should also offer business courses 
including typing and stenography for women. 

Paul, Dorothy, "The Professional Speaks," Inte rior Desig n , 
July, 1964. 

The student designer should have more training and 
practical experience with shopping and budgets. 

Lynch, D. 0. Supervisory Management , 11:20, April, 1966. 

What the supervisor should know about contracts. Is 
it legally binding? 



76 



Milroy, Robert R. "Tlie Small Business Corporations: Proceed 

with Caution." b usiness Horizo ns, Sumner, 1960, pp. 97-109. 

An act of Congress passed in 1958 made special pro- 
visions for smaller business corporations whereby they 
could be taxed as partnerships. Corporations set up in 
this way are known by various names such as an "Electing 
Corporation , " A "Tax Option Corporation," a "Subchapter 
S Corporation," but most frequently a "Snail Business 
Corporation . " 

"The Professional Speaks," Interior Design . July, 1964. 
Blair Catterton, Lee Chambers, John C. Murphy, 
Richard Greiwe, Dorothy Paul, Dede Draper, and Mildred 
Deutsch tell what they believe is lacking in the training 
of the graduating interior designer. 

"Professional Standards, Ethics, and Business Practices," 

Kans as Bu siness Review , Vol. 13, No. 3 (March 1960) p. 2-7. 

Pertinent information on business by the University 
of Kansas . 

Shannon, J, R. "Tips to Writers from Seventy-five Editors of 

Educational Periodicals," J ournal of Educational Research , 
44, 1950, p. 241-68. 

Art in writing for educational periodicals. 

"Updated Apprenticeship," Home Fur nis hings D aily , July 24, 
1964. 

Apprentices were asked what seemed most valuable to 

them after six weeks of apprenticeship in New York. They 

stressed client relationship, business procedures, quick 
decisions, and working with products. 



UNPUBLISHED 



Interior Design 66, University of California Extension/Berkeley, 
August 27-September 9, 1966. (A mimeographed program and 
also mimeographed proceedings in which the opinions and 
convictions of educators of and interior designers were, 
expressed and studied. One of the most recent efforts to- 
ward the "business" of interior design). 

Interior Design Educators Council, (Purdue University, May 
12-15, 1966) mimeographed proceedings which included 
recommendations concerning business practice in interior 
design . 



77 






APPENDIX 

A. SOURCES OF BUSINESS INFORMATION 

Prof esc Ion al Organ! z_ ittons gad Associat io ns f or Int erior 
De signers and Relate d Profes sions 

American Institute of Architects, headquarters: Washington, 

D. C. 
American Institute of Designers, headquarters, New York City. 

(Formerly American Institute of Decorators.) 
American Institute of Landscape Architects, headquarters, 

Lce Angeles, California 
American Society of Landscape Architects, headquarters, 

Washington, D, C. 
Home Improvement Council 
Home Lighting Institute 
Interior Designers Education Council 
National Home Fashions League 
National Society of Interior Designers 
Painting and Decorating Contractors of America, headquarters, 

Chicago, Illinois 
Society of American Registered Architects , headquarters, 

Houston, Texas 



79 



Director lea and Registe rs for Persons, Firms, Organization s, 

and Biographies 

The following list is for persons and f irm-5 : 

D irecto r/ of Dir ectors . (British). London: Thomas Skinner and 
Company. Annually. 

Moo dy ' s Manual of Investments . American and Foreign. New York: 
Moody's Investors Service. Annually with contiguous re- 
visions . 

Poor ' s Reg iste r of Directors and Executives . Hew York: Stan 

and Poor's Publishing Company. Annually. There is both a 
complete directory and a geographical directory available 
in libraries. 

Rand McNaily Ban kers Directory . Chicago: Rand McNally and 
Company. Semi-annually. 

S tandard C orpora t ion Record s . New York: Standard and Poor's 
Corp. Continuously revised. 

hone Directory . Local telephone companies have directories 
for most major cities in the United States. 

Additional information can be obtained from banks, Better 
Business Bureaus, Chambers of Commerce, advertising listings 
of companies in periodicals, Sweet's catalogs, and similar 
other places. 

For general biographical information, the following ray 

be helpful: 

Moore ' s wh o ' s Who in Ca lifornia . Los Angeles: John M. Moore, 
1 9 59 . 

Wh o ' s Who . New York: Macmillan. Annually. 

Who' s Who i_n Americ a. Chicago: A. N. Marquis Company. Biennially. 

!iJl2.IjL k' no iB. latin America. 3rd ed. Chicago: A. N. Marquis 
Company ; 1945-51. 

Wh o ' s Who in_ the Wes t . 7th ed. Chicago: A. N. Marquis Company, 
1960. 



Directories of firms are available in libraries and banks. 

Credit ratings are available under some circumstances, usually 

at banks. A few sources are listed: 

Dun and Bradstreet. Millio n Dollar Directory. New York: Dun & 
Bradstreet, Annually with monthly supplements. 

This listing of large firms and their directors is avail- 
ble in libraries and banks and with some firms. Part on 
one's business banking service can supply this informa- 
tion when required. 

Kelly ' s Directory of Merchants ■ Manufacturers and Shippers. 
London: Kelly's Directory, Ltd. Annually. 

With the trend toward more and more international trade, 
there are times when it is beneficial to know the busi- 
ness address and pertinent facts about foreign merchants. 

Lyon Furniture Mercantile Agency, Lyon Red Boo k. New York: 
Semi-annual. 

Reports confined to firms dealing with interior fur- 
n:i shings . 

MacRae' s Blue Book. Chicago: MacRae'a Blue Book Company. 
Annually . 

Plant Purchasing Direct ory . Chicago: Conover-Mast Publications, 
Biennially . 

Thomas ' Regis ter of Am erican Man u facturers . New York: Thomas 
Publishing Company. Annually. (Several volumes) 

A comprehensive listing of Aaierican manufacturers, alpha- 
betical listing, listing by type of product. Addresses 
and other information included. 

There are times when it is useful to obtain the names of 

associations and organizations. There are several directories 

available in most libraries : 

Directory o_f Natio nal Associations of Businessmen . Washington, 
I). C.s Compiled by C. J. Judkins , Office of Technical 
Services. 1961 (It is reported that a new basic directory 
is in process) 



81 



Encyclopedia of Organizat i ons . Iietroit, Michigan: Gala Re- 
search Company. Covers professional, trade, university, 
educational and other associations. 

Ind us trial Research Laboratories of the Un i t e d Sta tes In - 
cludin g Consulting Rese arch Laboratories . 11th ed. 
Washington, D. C: National Research Council, 1960. 

Scientific and Technical O rganizat ions of the United St ates 
and Canada . 7th ed. Washington, D. C. : National Re- 
search Council, 1961. 



Trade Perio i leal; 

An t i a u e .-. . 



Arc hitectural Design , London: Standard Catalog Company, 
Ltd". 

Archite ctural Forum . American Planning and Civic Associa- 
tion. 

Arc hitectural Record . New York: McGraw-Hill, Inc. 

A r c h i t e c t u r c / We s t . Seattle, Washington: Construction 
Publications . 

C ontract . New York: II. M. S. Publications, Inc., divi- 
sion of Gralla Publications. 

Industrial Design . New York: Whitney Publications, Inc. 

I nteriors : New York: Whitney Publications, Inc. 

Interior Design . New York: Interior Design Division, 
Whitney Communications Company. 

In ter ior Design and Contract Furnishing s . London: 
Business Journals, Ltd. 



Many domestic home furnishings magazines. 

Many foreign magazines and trade journals for design, 
architecture, and related fields. 



Newspapers Covering Bm .j ness In General 

Home Fur ni shing s Da i ly . Hew York: Fairchild. Publications, 
Inc. , Daily . 

K a t i o n a 1 Observer. New York: Dow Jones and Company, Inc., 
Daily. 

New York Times . New York: New York Times Company, Daily, 
weekly, or Sunday. 

Hal] Street; Journal 



Local and metropolitan newspapers , daily, weekly, or 
Sunday . 



ines Co vering Bus iness in General 

Barron's. New York: Barron's Publishing Company, Inc. 
weekly . 

Business Literature, Newark, N. J. : Public Library of 
Newark N. J., Business Branch, Monthly. 

Business Week . New York: McGraw-Hill Publishing Company, 

Weekly. 

Newsweek . 



Monthly Labor Review. Washington, D. C. United Stated 
Bureau of Labor Statistics, United States Superintendent 
of Documents, Government Printing Office, Monthly. 

Survey of Current Bus iness . Washington, D. C. : United 
States Superintendent of Documents, Government Printing 
Office, Monthly. 

United States Government Publications Monthly Catalog. 
Washington, I). C . : United States Superintendent of 
Documents, Government Printing Office, Annual purchase 
or subscription. 

United States News and World Report . Washington, D. C. : 
0. S. News and World P._-port, Inc., Weekly. 

Time. Chicago, Illinois: Time, Inc., Weekly. 

Fortune . Chicago, Illinois: litre, Inc., Monthly. 



Sources of G eneral and Varied Infor mation 

Funk a_nd Wagnall's College Standard Dictionary, of the Eng lish 
Languag e. New York: Funk and Wagnalls Company, 1963. 

Definition of words, spelling, pronunciation, and also 
a gazeteer with population figures of the United States, 
foreign countries, and ranking cities. Definitions of 
commonly used foreign phrases may be useful. 

The New I nformation Please Almanac, Atlas and Yearbook . New 
York: Simon and Schuster. Annually. 

Tables of statistics on all types of activity both 
national and international, resume of new laws, a 
chronology of the year's events, a discussion of major 
political problems of the year, social and business 
problems are covered concisely. Federal government 
prime sources are used to substantiate the information. 

New York Wor ld-Tel e gram . The W orld Almanac and Book of Facts . 
New York: New York World-Telegram. Annually. 

This is a time-saving publication which contains tables 
of statistics on all type of activity, resumes of new 
laws and a chronology of events for the year. 

Rational Industrial Conference Board. The Econom ic Almana c ■ 
New York: Newsweek, Inc. Annually. 

Statistics and Information not to be found in the 
Statistical Abstract of the United States may be found 
here and the information may be more current, There is 
a "Glossary of Selected Terms" which defines terms in 
current use. 

Survey of Current Business . Washington, D. C, United States 
Superintendent of Documents, Government Printing Office. 
Monthly . 

United States Bureau of the Census. Statistical Ab stra ct of the 
United States . Washington, D. C: Government Printing 
Office. Annually. 



Statistics collected over a period of years are to be 
found here. The list is broad and accurate for business 
indices. 



84 



Webster's New World Dictionary of the American Language, 

College Edition. New York: The Woric! Publishing Company, 
1960. 

Definitions of words, spelling, pronunciation, and 
synonyms are given. There is a section listing United 
States and Canadian schools of higher learning, a sec- 
tion for weights and measures and other information. 



Sources of Information Concerning the National Busines s Statue 
Annual Federal Budget 
Federal Reserve Board's index of industrial production 



Foreign Trade Impact Studies, by states, U, S. Depart- 
ment of Commerce 

Gross National Product reports 

Migration of population by states and regions 

President's economic report (annual) 

President's report of Council of Economic Advisors 

Snail Business Investment Act 1958. 

State business reviews such as Kans ss Business Review . 
University of Kansas 



Sources of Interior Design ar.d General Business I nfo rmat ion 

Accoun tant ' s Handbook 

Barron 's 

Board of Governors of the Federal Reserve System, 
Federal Reserve Bulletin , (monthly) 

Business and financial section of daily newspaper 

Business Week 

The Commercial and Financial Chronicle 



85 



Department of Commerce: Survey of Current Business 
(monthly) 

Fortune 

Government: Statistical Abstract of the United States 

Home Furnishings Daily 

Libraries; dictionaries, encyclopedias, handbooks, and 
manuals 

Moody's Manual of Investments 

National Observer 

New York Times (daily and weekly) 

Personnel Handbook 

Wall Street Journal 



V 



86 



A TYPICAL LISTING OF BUSINESSES, SERVICES, TRADES, 
AND ORGANIZATIONS RELATED TO THE FIELD OF INTERIOR 
DESIGN AS FOUND IN THE LOS ANGELES YELLOW PAGES OF 
THE PACIFIC TELEPHONE AND TELEGRAPH COMPANY 



Accoustical contractors 
Accoustical supplies 
Accoustical materials 
Air conditioning contractors 
Air conditioning equipment and suppliers 
Antiques, dealers 

Antiques, repairing and restoring 
Architects 

Architects' supplies 
Architectural illustration 
Art galleries 
Art goods - repairing 
Art goods - retail 

Art goods, wholesale and manufacturers 
Art goods, flowers 
Artificial flower suppliers 
Artists - commercial 
Artists - fine arts 
Artists' materials - retail 
Artists' materials - wholesale and mfrs. 
Associations 
Awnings 
Banks 

Bar fixtures 

Bathroom fixtures and accessories 
Bedding 

Beds - disappearing 
Bedspreads 
Blue printers 

Blue printing equipment & suppliers 
Brass 
Brazing 

.Brick - common, face, etc. 
Brick - used 
Builders hardware 
Building designers 
Building materials 

Business and industrial arbitration 
Cabinet makers 
Canvas products 
Canvas - wholesale and manufacturers 



87 



Carpenters 

Carpet, rug and upholstery 

Carpet - cleaners 

Carpets and rugs - dealers 

Carpets and rugs - distributors 

Carpets and rugs - dyers 

Carpets and rugs - Layers 

Ceilings 

Ceramics 

Chair caning 

Chair - wholesale and manufacturers 

Chinaware 

Cleaners and dyers 

Closets and closet accessories 

Contractors 

Alteration 

Building, general 

Marine 

Masonry 
Curtain and blanket cleaners 
Curtain, retail, wholesale, manufacturer 
Cushions 

Cutting room equipment and supplies 
Designers 

Drafting Room Equipment 
Draftsmen 

Draperies, retail, wholesale, manufacturers 
Drapery and curtain fixtures 

Drapery fabrics - wholesale and manufacturers 
Drapery installation 
Drapery trimmings 
Drawing materials 
Dry wall contractors 
Dyers - industrial 
Electric contractors 

Electric equipment, wholesale and manufacturers 
Elevators 
Embroidery 

Engineers - consulting 
cos t 

electrical 
Experimental work 
Exporters 
Factors 
Financing 

Fireplace equipment dealers 

Fireplace equipment wholesalers and manufacturers 
Floor laying, refinishing and resurfacing 
Floor materials 
Furniture - custom made 
Furniture, manufacturers and wholesalers 



Furniture, repairing and refinishing 

Gift wares, manufacturers 

Gift wares, wholesale 

Glass 

Glass and china decorators 

Glass, stained and leaded 

Hardware 

Importers 

Interior decorators and designers 

Interior decorator's supplies 

Iron ornamental work 

Labor organizations 

Lamp shades - cleaning and repairing 
supplies and parts 
wholesale and manufacturers 

Lighting fixtures - wholesale 

manufacturers 

Linoleum 

Lumber 

Mantels 

Mat tresses 

Mirrors 

Paint 

Painting contractors 

Picture frames 

Pictures 

Plastering contractors 

Quilting 

R'yon fabrics 

Rugs 

School furniture 

Sewing contractors 

Sewing machines 

Silks 

Silversmiths 

Silverware 

Textile designers 

Textile manufacturers and representatives 

Thread 

Tile, ceramic 

Tile, asphalt, cork, metal, plastic, rubber, etc. 

Upholsterers 

Upholsterers' supplies 

Upholstery fabrics 

Wall coatings 

Wall paper 

Weaving - loom 

mending 

Window shades 

Wood carving 



Wood turning 

Wood graining and finishing 

Woodworker 



90 



C. SAMPLE BUSINESS FORMS 



Business forms required by individual firms vary consid- 
erably and they are usually designed for specific purposes. 
Samples of an invoice, multiple estimate sheets, sales slip 
and a purchase order are submitted to show some of the in- 
formation which may be required. Any good office supply or 
printing contractor can furnish handsome business forms for 
any purpose. Electronic data processing has changed the 
requirements. For immediate identification, the firm name 
should appear on all forms. 



-' 






MOORE INSTITUTE Of ART, SCIENCE AND INDUSTRY 
PIRM NAME 

INTERIOR, DECORATION 



BROAD 6 MASTER STS. 
APDB.ES s 



PHILADELPHIA STEVENSON 224 2 

CITY- STATE -ZIP TELEPHONE/CABLF 



ESTIMATE FOR PROPOSED WORK FOR 

QUANTITY" ' DESCRIPTION 




cjosn/pees 



5/ 






^ 



c£ 







/(udttu*"* 



Uaft" 



PERTINENT CONDITIONS'/^ /^ / 



\/ /rlt/fis/j/ C // ) ' a. e / si V C . it 



1 S fCi 



TAX 



MOORE INSTITUTE OF ART, SC I ENCE AND INDUSTRY 



NTERIOfc DECORATION 



BROAD 6 MASTER STS. 



PHILADELPHIA 



STEVENSON 2242 



ESTIMATE FOR PROPOSED WORK FOR 







/' 









*&&' 



MOORE INSTITUTE Of ART, S CIENCE AND INDUSTRY 

INTERIOR, DECORATION 

BROAD 6 MASTER STS. PHILADELPHIA STEVENSON 22 4 2 



ESTIMATE FOR PROPOSED WORK FOR 
fckx&mo octet }?&g&> 2 J?l>. (u/tAy'c£u-/<-^> W.*™-, 




<Z6ta>t<U6Uuu f/->aA/ (UtcJChuiw u/'-ct^/Ulhi 

Atudtttf? tuU tab M&$> u#lsuh4& 



fafi 



PURCHASE ORDER no. 

NAME OF FIRM 



MOORE INSTITUTE OF ART, SCIENCE AND INDUSTRY 

BROAD and MASTER STRBOTS — PHILADSLPHIA 



TEL. STEVENSON 2242 



DATE 



£Uz~M-2? 




/<S^f-*0> Ami ■ eifueM^ aXu^fc A^>- //t' 



:fi 



&,. 



Si 



«■■< 



7 . 



o 






QUOTE O COST NOTED 



DEUIVBET CONDITIONS 



SHIP TO 



/£ 



&-* 



F=-|B.IS/t NAN/\E 

MOORE INSTITUTE OF ART, SCIENCE AND INDUSTRY 
AUTHpBI2ED ^Sl GN ATV&-E; 

by /a^fut/t^t-c-* * 



PURCHASE ORDER No. 



MOORE INSTITUTE Of ART, SCIENCE AND INDUSTRY 

BROAD and MASTER STRSSTS — PHILADELPHIA 



TEL. STEVENSON 2242 

TO , .- •, .„s.,//tss 



///a^TT'^M- S/' / /,S~ r^X- 



. Qs£uZfc JU>- 'ft/is 



& /.pj" S(p' /><&&- 



SHIP TO 

JL. 



MOORE INSTITUTE OF ART, SCIENCE AND INDUSTRY 




Wc '■ 



/ 



PURCHASE ORDER no. 



MOORE INSTITUTE OF ART, SCIENCE AND INDUSTRY 

BROAD and MASTER STREETS — PHILADELPHIA 
TEL. STEVENSON 2242 DATS 'Vvr^VA . /' ~s ' 



T n .,'>/// /.//^^//.^ 



r* 



////Jljfcsj^t \fpfsf~ 



"/Lc/sJ ■ ' '- , ■' ■- 



/-*t 



/6 ^*Gz M^'l- a/u>jsj~ aXuifc /u>. '/yh 
& A3S' S(p ' ^uaJj^ 



SHIP TO 

'//:/.. . rQJUxSUf 






MOORE INSTITUTE OF ART, SCIEKCE AND INDUSTRY 
/ 

by /a^es£uJi*<jL> /^Ut^.. 

/J 1 



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9 8 



D. CREDIT I.ETTF.RS AND FORMS 



Methods for establishing credit vary. Some firms re- 
quest a financial statement, some request references, and 
others request banking information. 

The letters submitted on the following pages were 
replies to requests for open account credit by Jacqueline 
H. Ward of VJard and Ward of Las Vegas, Nevada, in the 
spring of 1950. There is one financial statement which is 
typical of information requested. 



I 



LUN ON COMPANY 

77\ SACRAMENTO STRE.ET 

SAN FRANCISCO 8, 

CALIFORNIA 

TELEPHONE OHBUCSJMX 



Deo. 12, 1949. 



Ward & Ward 

Con trac tors- 1e signers 

Las Vegas, Calif, 



Hear Sirs: 



We are enclosing some lists for your study 

and hope we may be of service when you are ready. 

We have all the necessary basic furnishings and 
unusual accessories with the tropical and/or 
Oriental feeling. Also- we have building material: 
Buch as poles, wall mats ruggod floor coverings etc. 

Earlier in the new year we hope to have an illustarted 
phamplet for your approval . 

We extend special attention to interiors designers 
and architects; so we shall b« looking forward to 
your letters. 



Very sincerely yours 



LO;ecl. 
enc. 3. 



Lun On Company. 



NO CREDIT REFERENCES REQUESTED 



EXCLUSIVE IMPORTERS BAMBOO AND RATTAN PRODUCTS 

SINCE 1901 



Charles H. Johnstone 

WESTERN REPRESENTATIVE 



UPHOLSTERY AND DRAPERY FABRICS 

2 SO PARK AVISNUi: AT -VI TV 

NexvYorklZN.Y. 



February 3, 1950 

Jacqueline H. Ward 
Post Office Box 1862 
Las Vegas, Nevada 

Dear Miss Ward: 

Answering your letter of February first, it gives us 
pleasure to enclose, herewith, a copy of our Financial Statement 
form which we will ask you to kindly fill out and forward to our 
New Xork office direct. Naturally this statement covers a lot of 
things that it is not necessary for a decorator to fill out. 
What the Credit Department is interested in is your bank reference 
and n ames of any concerns similar to cur own that vou have a n 
open account with . 

We note that you are opening an interior decorating 
department. Naturally you v/ill be interested in purchasing some 
decorative fabrics in sample form as our dealings are confined to 
established concerns owning our fabrics. Thus we would be glad to 
entertain you on your next trip to Los Angeles. It would give us 
pleasure to have you look at our line. In the meantime if you 
have any special requirements, do not fail to call upon us for 
memorandum samples or any information you may desire. 

Looking forward to pleasant business relations, we are, 

rs/very truly/ 

-fXH^JTHORP & CO., INC. 
Charles H. Johnstone 

REQUESTED FINANCIAL STATEMENT, 
CHJ:nh BANK REFERENCE, AND REFERENCE ACCOUNTS. 



ARTHURHLEE 8 SOUS £S 

103 nORTH ROBERTSOU BLVD. • LOS AHGKLES30 • TELEPHONE CRESTVIEW 1-5174 

February 3, 1950 



Ward & Ward 

Poet Office Box 1862 

Las Vegas, Nevada 

Att: Miss Jacqueline H. Ward 

Dear Hiss Ward: 

Thank you for your letter of February 1, advising us you are going 
to supervise the new interior decorating department for your firm. 

You request information relative to establishing your firm with us. 
It is the policy of our firm that all out of town accounts must buy 
a representative sample line before we can serve them. As vie do not 
know when it will be possible for us to have a salesman visit Las 
Vegas, we suggest if it is at all possible you come to Los Angeles 
and visit our showroom where we have our complete lines. 

It is also necessary to furnish us with credit references and the 
name of your business bank before purchasing samples in order that 
we may establish you on our books with our New York offices. 

For your information we also represent Cheney Brothers and Bailey & 
Griffin here in this office. 

We shall look forward to having you visit us here in Los Angeles, 
and with our every good wish for your success. 

Very truly yours, 

ARTHUR H. LEE & SONS, INC. 

REQUESTED CREDIT AND BANK REFERENCES, 
PURCHASE OF SAMPE LINE 



"HAECKEL 



WEAVES 



WAND VOVEN FABRICS 



February 3, 1950. 



2920 BEVERLY BOULEVARD 
LOS ANGELES 4, CALIFORNIA 
TELEPHONE DREXEL 1084 



Miss Jacqueline H. Ward 
Interior Decorator 
Ward and Ward 
Post Office Box J.862 
Lbs Vegas, Nevada. 

Dear Miss Ward: 

Thank you for your letter of January 5th. We are very 
glad Indeed that you wish to open an account with us 
and you may be assured of our full cooperation and 
interest. We shall appreciate the receipt of two 
or three trade and bank references for our records. 

Kindly advise your business address and on our next trip 
to Las Vegas we will stop to show you our complete line 
of handwoven drapery and upholstery fabrics and casement 
curtain fabrics. We have many new and beautiful designs, 
with and without metal effects, which we ere sure will 
please you. 

Again thanking you for your interest and wishing you 
much success, we remain, 

Very truly yours, 



MZW 



For Krnest K 
HM:M 



■M. 



l&e'c ke 1 
REQUESTED TRADE AND BANK REFERENCES 



HAND WOVIN DI1HI1 AND II r H O 1 SI ! H IJIIIC1 POD DISIINCTIVI mTIIIOIS 



^u . Jii. 



THE S. M. HEXTER COMPANY 

C/abrics &or clnltrion 

103 SO. ROBERTSON BLVD. 

LOS ANGELES 3fi, CALIF. 
February 6, 1950 



Ward and Ward 
P.O. Box 1862 
Las Vocaa 

Nevada 

Atti Jacqueline H. Ward 

Dear Miss Wardt 

Enolosed it credit oardtfor open account. 

Please write in on card, three or more 
Firms with whom you now have aotive 
aocounts - also Dunn & Bradstreet or 
Lyons , if listed. Bank References. 

You may mail this card direotly to 
our Cleveland Offioe, 2810 Superior 
Avenue . 



Yours very truly. 



Dorothy Gllmore 
Los Angeles Offioe 



G^jLrvrv*>Jk 



REQUESTED TRADE REFERENCE, D^S 
OR l^ONS AND BANK REFERENCE 



n.MY 



GoodaU 




as, iiio-mi*oa= 



. . . Our N«w Addreii . . . 
SIS NO. LA CIENEGA BIVD. 
LOS ANGELES 44, CALIF. February 2, 1950 



Jacqueline H. Ward 
P.O. Box 1862 
Las Vegas, Nevada 

Dear Miss Wardi 

This is to acknowledge your letter of Feb.l, 1950. 

For your information, all oredlt matters are handled direotlv through n ur P.red-tt 
Department at Sanford, Maine. This sales office carries a line of our samples 
and it is used by the salesmen in this area. We do not maintain a oredit dept. 
I am forwarding your letter to Miss Lillian Richards at Sanford, Maine. 

With reference to your last paragraph concerning stocking samples, this is to 
advise that we will be glad to sell you a representative selection of samples 
for your operation. Samples from this off ioe are loaned on a too weeks mem- 
orandum basis, and any samples not returned after that tine are billed directly 
to the customer. 

Please let us know if you desire to carry our line of samples on the conditions 
outlined above. 

Sincerely yours. 

Dean Markh&m 
DMidem NATIONAL CREDIT OFFICE 



A SUBSIDIARY OF GOODALL-SANFORD, INC. 



r, 



/ 



SAN FRANCISCO OFFICE 
1355 MARKET STREET 
TELEPHONE HEMLOCK 1-9874 

F- SCHUMACHER- &• CO 

Importers • Manufacturers • Distributors 

DECORATIVE • DRAPERY- & • UPHOLSTERY ■ FABRICS 

CARPETS • WALLPAPERS 

60 West 40? St. New York 18 

SAN FRANCISCO 3, CALIF. 
February ? r 195<3 



Ward & Sard 

Las Vegas, Nevada 

Attnj Jacqueline H . Ward 

Gentleman 1 

We have your letter of February 1st and appreciate; 
your interest in our fabrics. Our representative 
will be happy to call upon you during the-next trip 
to your area. In the meantime, we are enclosing 
a credit application , which will put the routine 
wheels in motion. Also, we suggest our Preference 
Plan, form enclosed, as the best means of getting 
our latest fabrics, quickly. They willSBnd you 
about 6 samples a month, any of which are returnable 
for credit within 30 days. The list of Preference 
accounts is also the mailing list for bonus books and 
freesamples, which is an added attraction. 

Thank you again for your interest and please let 
us know when we may be of further service. 



Very truly yours. 




Jack Murphyl 



CREDIT APPLICATION FORM 



rATEMEIVT OF FINANCIAL CONDITION OF 

Kind of Business Interior Dccori-tor 



WARD & WARD 
Jaccuollne II. 



Ward 



.Address. 



P. 0. Doy.'IJj62, Las Vocas, 



TO_ 



STROHEIM & ROMANN 



■*-« 



N«me of film tiVinc 



[THIS FORM APPROVED AND PUBLISHED BY THE NATIONAL ASSOCIATION OF CREDIT MEN] 

For the purpose of obtaining merchandise from you on credit, or for the extension of credit, we make the following state- 
:nt in writing, intending that you should rely thereon respecting our exact financial condition. 

IPLEASE ANSWER ALL QUESTIONS. WHEN NO FIGURES ARE INSERTED. WRITE W0RD/KONET 



ASSETS 



ah in bonk 
sli on liancL. 



counts receivable, not due 

counts receivable, past due 

tes and acceptances receivable , 

irchandiso not on consignment or conditional sale 
tow valued : at cost Qi or "at cost or market, which- 
ever is lower" □) 
her current assets (describe): 



TOTAL CURRENT ASSETS. 



,nd and buildings (present depreciated value) 

ichinery, fixtures and other equipment (present 
depreciated value) 



le from partners, or others not customers, 
her assets (describe): 



TOTAL ASSETS. 



000 



;oo 



5QQ. 



000 
000 



£00.00 



CQ_ 



00 



QQl 



00. 
00 



LIABILITIES 



Accounts payable for merchand: 
Accounts payable for merchandj*B?vetc., not due 
Acceptances and notes payable fir rarchandise. 
Owing to finance companies, baSjta^or othi 

(Secured by $ ^ ^ of accounts sold. 

/> ijfedged or assignedj ► 

(Secured by 8 * * r§ °* accepCSfim* 

or not«^ pledged or assigneTl) 




(Secured by $_ 



_of me: 
inventory pledged ot 
Taxes, interest, rental, payrolls, etc., acci 
Notes payable to banksr 
Payable to partnerv^nends, relativei 
Other current BfrMstfa (describe): 




rLITlEf 



TOTAL CURRENT LI 
Mortgage sajand and buildii 
Chattel nrrjjtgage or liens on jMdjTTand equip't_ 
Other liftMities not currentMWescribe) : 



-x 



lia& 



TOTAL LIABILITIES. 



NsCworth (If Corp.^lflVde Capital and Surplus) 
TOTAL (NET WORTH^CtTO LIABILITIES). 



00 




Tour terms of aale_ 

Average monthly expenses $3 
or acceptances discounted or sold $__ 



■e you a coroomtion, co-partnership, or individually owned?. 

inual sa!es^^Bp|LXlCL .Average monthly sales for cash $.. 

ir what amount are you liable as endorser, surety, guarantor, etc. T $. 

nount of fire insurance $^Jfl fQOO Life insurance for benefit of 

poment or conditional 

e $ at 9 per month). If machinery or equipment is under lealp contract, state amount of monthly payments $. 

hat books of account do you kpqp. li:ii>- j pittm if!*l £j J a < ". Anftiiil date** last inventory rO bPT \i.:Vy J. ■> 19 r J»0 
i your books auditedf_ 



Jiess $., , ' Q . -f- - 1 ( - jJ - - L - - What amount of merchandisi 
_What amount of machinery or equipmefiA held under conditional sale! $_ 



do you hold on eon- 
(Balanc* 



^ 



If so, b; 
tie to real estate is in name of JcMCCmeliriC H .^/ Lolmd C 

■m and annual rental /**\ How long 

eviou* buBinosi experience "[ O yr.: 



,V<.c ret 



and address of your bank 1 s^i: 



3: 






li^. 



.If business premises are leased to you, stats 
you been established t '>• .V G- ~> 



ALLY FROM 



^5 



1 



gaga 



WhereLJ 

i.'. v;-.i 



FOLLOWING FIRMS: 



NAMES 



~ 



AMOUNT OW1NC 



Urvnp T.in hop On, ,i-. r ny 



o :: rth 



' "817 i^outh 



Las Vega; 



TTCO - 



V.r\ Vnn Vnbnl Llrr. Cornea 



9% 



3 



300 



TjO~ 



took i i loctri c O 



U39 



£ 



liorth Fifth, 



uTTT 



TO" 



Dlrnrlr ('.. I-'nr-rO., 



iinrinr Contract 



2^.07 V; Hey, 



CiftdHllto. Incorporated 



3ucr: — CTT 



The foregoing statement has been carefully read by the undersigned (both the printed and written matter), and is, to my knowl- 
ge, in all respects complete, accurate and truthful. It discloses to you the true state of my (our) financial condition on rh f» ^P"d 
y of — I-'oi*i'Uar^9''Q- Since that time there has been no material unfavorable change in my: (our) financial condition, and if 
y such change takes placed (we) will give you notice. Until such notice is given, you are to regard this as a continuing statement. 
ame of Individual or Firm \Iia\1) <"; . ,.:J.lD . ^^_ 



Partnership, Name Partners 
. Corporation,, -'- ^^OfficeoL 



JaccuG.Iine II 
Leland C. 



ite oi Signing s.^m-nr i''ebpur;ry22 Street ^ - 
IS 50 

itnegs 

rsidence Address 

of Witness 



rcl 



::r& 



Post Offio c Bo:: 

"TcT 



1 ;<->-■- Tail? City L:.: 



Vci 



State _cv£ua_ 



Signed by- 
Title, 



F SCHUMACHER- &■ CO 

Importers • Manufacturers • Distributors 

DECORATIVE • DRAPERY- & • UPHOLSTERY • FABRICS 

CARPETS • WALL PAPERS 

60 West 40'- h St. New York 18 



April 
Fifth 
19 5 



Ward & Vrad 

Box 1862 

Las Vegas, Nevada 

Gentlemen: 



Thank you for the account you have just opened with 
F. Schumacher & Company. All of us are looking for- 
ward with pleasure to serving you and members of your 
organization. 

We hope that you will always find at Schumacher's 
complete assortments of the Fabrics, Wallpapers and 
Carpets for which you are looking and at the prices 
you expect to pay. 

On your next visit to our 40th Street showrooms in New 
York, I do hope that you will take the time to stop in 
my office so that I may have the pleasure of personally 
assuring you of our desire to be of utmost service. 

Your interest in Sohumaoher Fabrics, Wallpapers and 
Carpets is really appreciated. Thank you. 



Sincerely 




PHQiabo 



Paul H. Qadebusch 
Treasurer & General Manager 
F. Schumacher & Company 



CREDIT ESTABLISHED 



10S 



E. CONTRACTS 



Documents for contracts end agreements are prepared for 
the individual and specific requirements of each service to 
be rendered. The A. I. A. documents submitted in no way are 
meant to be used as accepted forms for the interior designer. 
It has been recommended that a qualified attorney-at-law, 
bonding company or other authority be engaged for preparation 
of legal documents. 



rrv.v. 






FIRM NAME 

Date 

Project 



_ Project No. 



Address _ 



t*. 




Copies to: ^"' 

ALL INVOLVED PElNCIPALS 




De^C B l PriON OP AL L WOBK AMD SERVICFS, 




to complete the work required for the above named project in accordance with standard general conditions, drawings, 
specifications and instructions of the architect is hereby accepted and the owner, by countersignature hereto, enters with you 
into an agreement covering such sums set out in your proposal and based on the provisions of standard agreement form 
number between the owner and the contractor published by The American Institute of Archi- 

tects effective under current date, and which by reference is considered a part of this agreement. 



Owner 



DVS/&S., PLANS, ^P£ClPICATION5, E-TC* . 



Ul'MM'llll SUM 



I INMHt'll »H Alu llllli (S 



THE AMERICAN INSTITUTE OF ARCHITECTS 

AIA DOCUM ENT A 11 

oi-dt met VT\ '*■-' x u 



BID BOND 



SOME CLIENTS/ 
KNOW ALL MEN BY THESE PRESENTS, that we DES , QWEBS tgSOU(B£ 

JSIP BOND AVAILARie 

as Principal, hereinafter called the Principal, and f="I2C>M BONDING 

ASENCieS 

a corporation duly organized under the laws of the State of 

as Surety, hereinafter called the Surety, are held and firmly bound unto 



as Obligee, hereinafter called the Obligee, in the sum of 

Dollars ($ ), 

for the payment of which sum well and truly to be made, the said Principal and the said Surety, bind ourselves, 
our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents. 

WHEREAS, the Principal has submitted a bid for 



NOW, THEREFORE, if the Obligee shall accept the bid of the Principal and the Principal shall enter into a contract 
with the Obligee in accordance with the terms of such bid, and give such bond or bonds as may be specified in the bidding 
or contract documents with good and sufficient surety for the faithful performance of such contract and for the prompt 
payment of labor and material furnished in the prosecution thereof, or in the event of the failure of the Principal to enter 
such contract and give such bond or bonds, if the Principal shall pay to the Obligee the difference not to exceed the penalty 
hereof between the amount specified in said bid and such larger amount for which the Obligee may in good faith contract 
with another party to perform the work covered by said bid, then this obligation shall be null and void, otherwise to remain 
in full force and effect. 

Signed and sealed this day of A.D. 19 , 



Principal 



(Seal) 

Surety 



8bpt. net ED. 



THE AMERICAN INSTITUTE OF ARCHITECTS 

AIA DOCUMENT 
SEPT. 1963 ED. 

THE STANDARD FORM OF AGREEMENT 
BETWEEN OWNER AND CONTRACTOR 

THE AIA SHORT FORM CONTRACT FOR 

SMALL CONSTRUCTION CONTRACTS 

WHERE THE BASIS OF PAYMENT IS A 

STIPULATED SUM FIX. a 15 FEE 

FOB OTHER CONTRACTS THE AIA ISSUES THE STANDARD FORMS OF OWNER-CONTRACT«R AGREEMENTS AND THE 
STANDARD GENERAL CONDITIONS FOR THE CONSTRUCTION OF BUILDINGS FOR USE !»-( DNNECTION THEREWITH 



THIS AGREEMENT 

made the day of 



111 



in the year Nineteen Hundred and U 

Si D 

BY AND BETWEEN 

NAME OF CLIENT 

UK 



NAMH OF CONT-RAjCTOfc. 
WHO MAY ISE DE»I&N6R. 



WITNESSETH, , 

That the Owner and the Contractor, for the considerations hereinafter name 

ARTICLE 1. SCOPE OF THE WORK— - 

The Contractor shall furnish all of the material and perform all of the work for 



d 



as shown on the Drawings and described in the Specifications entitlai f\ 



I 



prepared by 

all in accordance with the terms of the Contract Documents. 



d anjr 



ARTICLE J. CONTRACT SUM— The Owner shall pay the Contractor for thT Dcr| 
subject to the additions and deductions provided therein in current funds, thetl m 



called the Owner, and 



called the Contractor. 



(0 

agr 8 
bi 

(3 



is follows: 



d 
hi 

onvrt ted as follows: 



Architect 



lance of the Contract 



dollars. ($ 



rotIR PACHW 



article 4. progress PAYMENTS— The Owner shall make payments on account of the contract, upon 
requisition by the Contractor, as follows: 



ARTICLE 5. ACCEPTANCE AND FINAL PAYMENT— Final payment shall be due days 

after completion of the work, provided the contract be then fully performed, subject to the provisions of 
Article 1 6 of the General Conditions. 



ARTICLE *. CONTRACT DOCUMENTS— Contract Documents are as noted in Article 1 of the General 
Conditions. The following is an enumeration of the drawings and specifications: 



OWNER-CONTRACTOR AGREEMENT FOUR PAGES 

A1A DOC. A107 SEPT, lues ED, PAGE I 



GENERAL CONDITIONS 



article I. CONTRACT DOCUMENTS 

The contract includes the Agreement and its General 
Conditions, the Drawings, and the Specifications. Two 
or more copies of each, as required, shall be signed by both 
parties and one signed copy of each retained by each party. 

The intent of these documents is to include all labor, 
materials, appliances and services of every kind necessary 
for the proper execution of the work, and the terms and 
conditions of payment therefor. 

The documents are to be considered as one, and what- 
ever is called for by any one of the documents shall be as 
binding as if called for by all. 

ARTICLE 2. SAMPLES 

The Contractor shall furnish for approval all samples as 
directed. The work shall be in accordance with approved 
samples. 

article 3. MATERIALS, APPLIANCES, EMPLOYEES 

Except as otherwise noted, the Contractor shall provide and 
pay for all materials, labor, tools, water, power and other 
items necessary to complete the work. 

Unless otherwise specified, all materials shall be new, and 
both workmanship and materials shall be of good quality. 

All workmen and sub-contractors shall be skilled in their 
trades. 

article 4. ROYALTIES AND PATENTS 

The Contractor shall pay all royalties and license fees. He 
shall defend all suits or claims for infringement of any 
patent rights and shall save the Owner harmless from loss 
on account thereof. 

article 5. SURVEYS, PERMITS, AND 
REGULATIONS 

The Owner shall furnish all surveys unless otherwise speci- 
fied. Permits and licenses necessary for the prosecution of 
the work shall be secured and paid for by the Contractor. 
Easements for permanent structures or permanent changes 
in existing facilities shall be secured and paid for by the 
Owner, unless otherwise specified. The Contractor shall 
comply with all laws and regulations bearing on the conduct 
of the work and shall notify the Owner if the drawings and 
specifications are at variance therewith. 

article 6. PROTECTION OF WORK, PROPERTY, 
AND PERSONS 

The Contractor shall adequately protect the work, adjacent 
property and the public and shall be responsible for any 
damage or injury due to his act or neglect. 

article 7. ACCESS TO WORK 

The Contractor shall permit and facilitate observation of 
the work by the Owner and his agents and public authorities 
at all times. 

article 8. CHANGES IN THE WORK 

The Owner may order changes in the work, the Contract 
Sum being adjusted accordingly. All such orders and adjust- 
ments shall be in writing. Claims by the Contractor for 
extra cost must be made in writing before executing the 
work involved. 

article 9. CORRECTION OF WORK 

The Contractor shall re-execute any work that fails to con- 
form to the requirements of the contract and that appears 
during the progress of the work, and shall remedy any 
defects due to faulty materials or workmanship which 
appear within a period of one year from the date of com- 
pletion of the contract. The provisions of this article apply 
lo work done by subcontractors as well as to work done by 
direct employees of the Contractor. 



article 10. OWNER'S RIGHT TO TERMINATE 
THE CONTRACT 

Should the Contractor neglect to prosecute the work prop- 
erly, or fail to perform any provision of the contract, the 
Owner, after seven days' written notice to the Contractor, 
and his surety if any may, without prejudice to any other 
remedy he may have, make good the deficiencies and may 
deduct the cost thereof from the payment then or thereafter 
due the contractor or. at his option, may terminate the 
contract and take possession of all materials, tools, and 
appliances and finish the work by such means as he sees 
fit, and if the unpaid balance of the contract price exceeds 
the expense of finishing the work, such excess shall be paid 
to the Contractor, but if such expense exceeds such unpaid 
balance, the Contractor shall pay the difference to the 
Owner. 

article 11. CONTRACTOR'S RIGHT TO 
TERMINATE CONTRACT 

Should the work be stopped by any public authority for a 
period of thirty days or more, through no fault of the Con- 
tractor, or should the work be stopped through act or 
neglect of the Owner for a period of seven days, or should 
the Owner fail lo pay the Contractor any payment within 
seven days after it is due, then the Contractor upon seven 
days' written notice to the Owner, may stop work or termi- 
nate the contract and recover from the Owner payment for 
all work executed and any loss sustained and reasonable 
profit and damages. 

article 12. PAYMENTS 

Payments shall be made as provided in the Agreement. The 
making and acceptance of the final payment shall constitute 
a waiver of all claims by the Owner, other than those 
arising from unsettled liens or from faulty work appearing 
thereafter, as provided for in Article 9, and of all claims by 
the Contractor except any previously made and still un- 
settled. Payments otherwise due may be withheld on account 
of defective work not remedied, liens filed, damage by the 
Contractor to others not adjusted, or failure to make pay- 
ments properly to subcontractors or for material or labor. 

article 13. CONTRACTORS LIABILITY INSURANCE 

The Contractor shall maintain such insurance as will pro- 
tect him from, claims under workmen's compensation acts 
and other employee benefits acts, from claims for damages 
because of bodily injury, including death, and from claims 
for damages to property which may arise both out of and 
during operations under this contract, whether such opera- 
tions be by himself or by any subcontractor or anyone 
directly or indirectly employed by either of them. This in- 
surance shall be written for not less than any limits of 
liability specified as part of this contract. Certificates of 
such insurance shall be tiled with the Owner and architect. 

article 14. OWNER'S LIABILITY INSURANCE 

The Owner shall be responsible for and at his option may 
maintain such insurance as will protect him from his con- 
tingent liability to others for damages because of bodily 
injury, including deaih, which may arise from operations 
under this contract, and any other liability for damages 
which the Contractor is required to insure under any pro- 
vision of this contract. 



The Owner shall effect and maintain fire insurance with ex- 
tended coverage upon the entire structure on which the 
work of this contract is to be done to one hundred per cent 
of ihe insurable value thereof, including items of labor and 
materials connected therewith whether in or adjacent lo the 
structure insured, materials in place or lo be used as part 
of the permanent construction including surplus materials, 
shanties, protective fences, bridges, temporary structures, 
miscellaneous materials and supplies incident to the work, 
and such scaffoldings, stagings, towers, forms, and equip* 



OWN Kit - CO Nf It ACTOR AtiltKKMKNT 
AtA DOO, Mill BUTT. 1UUS Kit. 



VOVK IV 



merit as are not owned or rented by the contractor, the cost 
of which is included in the cost of the work. Exclusions-. 
The insurance docs not cover any tools owned by mechanics, 
any tools, equipment, scaffolding, staging, towers, and forms 
owned or rented by the Contractor, the capital value of 
which is not included in the cost of the work, or any cook 
shanties, bunk houses or other structures erected for hous- 
ing the workmen. The loss, if any, is to be made adjustable 
with and payable to the Owner as Trustee for the insureds 
and contractors and subcontractors as their interests may 
appear, except in such cases as may require payment of all 
or a proportion of said insurance to be made to a mort- 
gagee as his interests may appear. 

Certificates of such insurance shall be Hied with the Con- 
tractor if he so requires. If the Owner fails to effect or 
maintain insurance as above and so notifies the Contractor, 
the Contractor may insure his own interests and that of the 
subcontractors and charge the cost thereof to the Owner. 
If the Contractor is damaged by failure of the Owner to 
maintain such insurance or to so notify the Contractor, he 
may recover as stipulated in the contract for recovery of 
damages. If other special insurance not herein provided for 
is required by the Contractor, the Owner shall effect such 
insurance at the Contractor's expense by appropriate riders 
to his fire insurance policy. The Owner, Contractor, and all 
subcontractors waive all rights, each against the others, for 
damages caused by fire or other perils covered by insurance 
provided for under the terms of this article except such 
rights as they may have to the proceeds of insurance held 
by the Owner as Trustee. 

The Owner shall be responsible for and at his option may 
insure against loss of use of his existing property, due to fire 
or otherwise, however caused. 

If required in writing by any party in interest, the Owner 
as Trustee shall, upon the occurrence of loss, give bond for 
the proper performance of his duties. He shall deposit any 
money received from insurance in an account separate from 
all his other funds and he shall distribute it in accordance 
with such agreement as the parties in interest may reach or 
under an award of arbitrators appointed, one by the Owner, 
another by joint action of the other parties in interest, all 
other procedure being as provided elsewhere in the contract 
for arbitration. If after loss no special agreement is made, 
replacement of injured work shall be ordered and executed 
as provided for changes in the work. 

The Trustee shall have power to adjust and settle any loss 
with the insurers unless one of the Contractors interested 
shall object in writing within three working days of the 



occurrence of loss, and thereupon arbitrators shall be chosen 
as above. The Trustee shall in that case make settlement 
with the insurers in accordance with the directions of such 
arbitrators, who shall also, if distribution by arbitration is 
required, direct such distribution. 

ARTICLE 16. LIENS 

The final payment shall not be due until the Contractor has 
delivered to the Owner a complete release of all liens arising 
out of this contract, or receipts in full covering all labor and 
materials for which a lien could be filed, or a bond satis- 
factory to the Owner indemnifying him against any Hen. 

article 17. SEPARATE CONTRACTS 

The Owner has the right to let other contracts in connection 
with the work and the Contractor shall properly cooperate 
with any such other contractors. 

article 18. THE ARCHITECT'S STATUS 

The Architect shall be the Owner's representative during the 
construction period. He has authority to stop the work if 
necessary to insure its proper execution. He shall certify to 
the Owner when payments under the contract are due and 
the amounts to be paid. He shall make decisions on all 
claims of the Owner or Contractor. All his decisions are 
subject to arbitration. 

article 19. ARBITRATION 

Any disagreement arising out of this contract or from the 
breach thereof shall be submitted to arbitration, and judg- 
ment upon the award rendered may be entered in the court 
of the forum, state or federal, having jurisdiction. It is mu- 
tually agreed that the decision of the arbitrators shall be a con- 
dition precedent to any right of legal action that either 
party may have against the other. The arbitration shall be 
held under the Standard Form of Arbitration Procedure of 
The American Institute of Architects or under the Rules of 
the American Arbitration Association. 

article 20. CLEANING UP 

The Contractor shall keep the premises free from accumula- 
tion of waste material and rubbish and at the completion of 
the work he shall remove from the premises all rubbish, 
implements and surplus materials and leave the building 
broom-clean. 



IN WITNESS WHEREOF the parties hereto executed this Agreement, the day and year first above written. 



OWNER-CONTRACTOR AGREEMENT 



FOUR PAGES 



AIA DOC. AIOT 



BEl'T. 1W6S ED. 



fuss* 
THE AMERICAN INSTITUTE OF ARCHITECTS Wft 

AIA DOCUMENT _ .- . 

SEPT. 1963 ED. 13 I 3 ! 



Hoai /^ 



THE STANDARD FORM OF AGREEMENT 
BETWEEN OWNER AND ARCHITECT 

ON A BASIS OF A 

PERCENTAGE OF CONSTRUCTION COST 



THIS AGREEMENT 
made this day of 

BY AND BETWEEN 



in the year Nineteen Hundred anrjtj 



Lcaal tjf^i **< tUt /^fc.cH. Fiiw\ 



WITNESSETH, 

that whereas the Owner intends to r £«, eiurc.^ - Wo.,^ 

^OMlWU. WOVUtj o'V ides) 



hereinafter«alled the Owner, and 
hereinafterfifcallyl the Architect 

I 5 
ir$ 

1L 



.ii<x."\ Vr< 







hereinaftdK called the Project, 



NOW, THEREFORE, •*■ y 

the Owner and the Architect, for the considerations hereinafter set forth agreejis follojvs: . . n 

ARTICLE I, THE ARCHITECT AGREES TO PROVIDE PROFESSIONAL SERVlPfcs FOB THE PROJECT AS ^. »» ,imW - 
HEREINAFTER SET FORTH. /n 4 B 7 "' 







}?Pfq 



ARTICLE 2. THE OWNER AGREES TO PAY THE ARCHITECT AS COMPENSATION-TOR HIS SERVICES! 

Khxw Chapter (MfikLiU mi-«»w Foe. \- UJ O io' 

2.1 For bit basic services s ' ( % ) of the project construction c/e^t, hereinafter referred 
to as the Basic Rale, the work to be let under a single lump sum contract, 

2.2 For work let on a cost-plus-fee basis, increase the Basic rate to A, del --'' 

2.3 For work let under separate contracts, increase the Basic Rate to JUj \ /-,"'-* 

2.4 For Additional Services defined in Article 4 hereinafter. 
the Direct Personnel Expense as defined in Article 7.1 hereinafter. 



Q S% .' Vsy*L\\ 



D 
Z 

u 



p4rtccnt ( 

PflZccnt ( 



) times 



In computing Direct Personnel Expense principal's time shall be computed at $ 
and employees' time shall be at their regular rate of pay plus normal benefits. 

2.5 Reimbursable expense as defined in Article 7.2 hereinafter to the amount expended. 



per hour. 



FOUR PACES 



TERMS AND CONDITIONS OF AGREEMENT BETWEEN OWNER AND ARCHITECT 



ARTICLE 3. ARCHITECTS BASIC SERVICES 

3.1 Schematic Design Phase. 

3.1.1 The Architect shall consult with the Owner to ascer- 
tain the requirements of the Project and shall confirm such 
requirements to the Owner. 

3.1.2 He shall prepare schematic design studies leading to 
a recommended solution together with a general description 
of the Project for approval by the Owner. 

3.1.3 He shall submit to the Owner a Statement of Prob- 
able Project Construction Cost based on current area, vol- 
ume or other unit costs. 

3.2 Design Development Phase. 

3.2.1 The Architect shall prepare from the approved Sche- 
matic Design Studies, the Design Development Documents 
consisting of plans, elevations and other drawings, and out- 
line specifications, to fix and illustrate the size and character 
of the entire Project in its essentials as to kinds of mate- 
rials, type of structure, mechanical and electrical systems 
and such other work as may be required. 

3.2.2 He shall submit to the Owner a further Statement 
of Probable Project Construction cost. 

3.3 Construction Documents Phase. 

3.3.1 The Architect shall prepare from the approved De- 
sign Development Documents, Working Drawings and Spec- 
ifications setting forth in detail the work required for the 
architectural, structural, mechanical, electrical, service-con- 
nected equipment, and site work, and the necessary bidding 
information. General Conditions of the Contract, and Sup- 
plementary General Conditions of the Contract, and shall 
assist in the drafting of Proposal and Contract Forms. 

3.3.2 He shall keep the Owner informed of any adjust- 
ments to previous Statements of Probable Project Construc- 
tion Cost indicated by changes in scope, requirements or 
market conditions. 

3.3.3 He shall be responsible for filing the required docu- 
ments to secure approval of governmental authorities having 
jurisdiction over the design of the Project. 

3.4 Construction Phase — General Administration of 
Construction Contracts. 

3.4.1 The Architect shall assist the Owner in obtaining 
proposals from Contractors and in awarding and preparing 
construction contracts. 

3.4.2 To the extent provided by the contract between the 
Owner and the Contractor, he shall make decisions on all 
claims of the Owner and Contractor and on all other matters 
relating to the execution and progress of the work or the 
interpretation of the Contract Documents. He shall check 
and approve samples, schedules, shop drawings and other 
submissions only for conformance with the design concept 
of the Project and for compliance with the information 
given by the Contract Documents, prepare change orders 
and assemble written guarantees required of the Contractors. 

3.4.3 He will make periodic visits to the site to familiarize 
himself generally with the progress and quality of the work 
and to determine in general if the work is proceeding in 
accordance with the Contract Documents. He will not be 
required to make exhaustive or continuous on-site inspec- 
tions to check the quality or quantity of the work and he 
will not be responsible for the Contractors' failure to carry 
out the construction work in accordance with the Contract 
Documents. During such visits and on the basis of his ob- 
servations while ai the site, he will keep the Owner in- 
formed of the progress of the work, will endeavor to guard 
the Owner against defects and deficiencies in the work of 
Contractors, and he may condemn work as failing to con- 
form to the Contract Documents. Based on such observa- 
tions and the Contractors' Applications for Payment, he will 
determine the amount owing to the Contractor and will issue 
Certificates fur Payment in such amounts. These Certificates 
will constitute a representation to the Owner, based on such 
observations and the data comprising the Application for 
Payment, that the work has progressed to the point indicated. 



By issuing a Certificate for Payment, the Architect will also 
represent to the Owner that, to the best of his knowledge, 
information and belief based on what his observations have 
revealed, the quality of the work is in accordance with the 
Contract Documents. He will conduct inspections to deter- 
mine the dates of substantial and final completion and issue 
a final Certificate for Payment. 

3.4.4 If more extensive representation at the site is re-^i 
quired, the conditions under which such representation shall J Fu.lL 
be furnished and a Project Representative selected, em- £ . . 
ployed and directed, shall be agreed to by the Owner and\ XLi^t- ^ 
the Architect and set forth in an exhibit to this Agreement^ v^jfcA^* 

ARTICLE 4. ARCHITECTS ADDITIONAL SERVICES 

The following services cause the Architect extra expense. 
If any of these services are authorized by the Owner they 
shall be paid for by the Owner as a Multiple of Direct Per- 
sonnel Expense: 

4.1 Making planning surveys and special analyses of the 
Owner's needs to clarify requirements of the Project. 

4.2 Making measured drawings of existing construction-*-! 

when required for planning additions or alterations thereto. | . 

4.3 Revising previously approved drawings or specifica- SnGyJo 
tions to accomplish changes. t i 

4.4 Providing Semi-Detailed or Detailed Cost Estimates. «^ *j[*^**~ 

4.5 Preparing documents for Alternate Bids and Change ~* OOO. 
Orders, or for supplemental work initiated after commence— (-© co-V"*-™* 
ment of the construction phase. 

4.6 Consultation concerning replacement of any work 
damaged by fire or other cause during construction and 
furnishing professional services of the types set forth in 
Article 3 above as may be required in connection with the 
replacement of such work. 

4.7 Arranging for the work to proceed should the con- 
tractor default due to delinquency or insolvency. 

4.8 Providing prolonged contract administration and ob- 
servation of construction should the construction contract 
time be exceeded by more than 25% due to no fault of 
the Architect. 

4.9 Preparing as-built drawings showing construction 
changes in the work and final locations of mechanical serv- 
ice lines and outlets on the basis of data furnished by the 
Contractor. 

4.10 Making an inspection of the Project prior to expira- 
tion of the guarantee period and reporting observed discrep- 
ancies under guarantees provided by the construction con- 
tracts. 

ARTICLE 5. THE OWNER'S RESPONSIBILITIES 

5.1 The Owner shall provide full information as lo his 
requirements for the Project. 

5.2 He shall designate, when necessary, representatives au- 
thorized to act in his behalf. He shall examine documents 
submitted by the Architect and render decisions pertaining 
thereto promptly, to avoid unreasonable delay in the the 
progress of the Architect's work. He shall observe the pro- 
cedure of issuing orders to contractors only through the 
Architect. 

5.3 He shall furnish or direct the Architect to obtain at 
the Owner's expense, a certified survey of the site, giving, 
as required, grades and lines of streets, alleys, pavements, 
and adjoining property; rights of way, restrictions, ease- 
ments, encroachments, zoning, deed restrictions, boundaries, 
and contours of the building site; locations, dimensions, and 
complete data pertaining to existing buildings, other improve- 
ments and trees; full information us to available service and 
utility lines both public and private; and test borings and 
pits necessary for determining subsoil conditions. 

5.4 He shall pay for structural, chemical, mechanical, soil 
mechanics or other tests and reports if required. 



WNEIt- ARCHITECT AGREEMENT 



FOIMI PACKS 



AIA DOC. li l.'.i 



sept, tvea ED 



5.5 He shall arrange and pay for such legal, auditing, and 
insurance counselling services as may be required for the 
Project. 

5.6 If the Owner observes or otherwise becomes aware of 
any defect in the Project, he shall give prompt written notice 
thereof to the Architect. 



ARTICLE 6. PROJECT CONSTRUCTION COST 

6.1 Project Construction Cost as herein referred to means 
the total cost of alt work designed or specified by the 
Architect, but does not include any payments made to the 
Architect or consultants. 

6.2 Project Construction Cost shall be based upon one of 
the following sources with precedence in the order listed: 

6.2.1 Lowest acceptable bona fide Contractor's proposal 
received for any or all portions of the Project. 

6.2.2 Semi-Detailed or Detailed Estimate of Project Con- 
struction Cost as defined in paragraph 6.4 below. 

6.2.3 The Architect's latest Statement of Probable Project 
Construction Cost based on current area, volume or other 
unit costs. 

6.3 When labor or material is furnished by the Owner, 
the Project Construction Cost shall include such labor and 
material at current market cost. 

6.4 If a fixed limit of Project Construction Cost is stated 
herein, or if otherwise authorized by the Owner, Estimates 
of the Probable Project Construction Cost prepared in 
Semi-Detailed or Detailed form by an experienced estimator 
will be secured by the Architect during the Design Develop- 
ment or Construction Documents Phase. 

6.5 If the Statement of Probable Project Construction 
Cost, or the Semi-Detailed or Detailed Cost Estimate, or 
the lowest bona fide proposal is in excess of any limit stated 
herein, the Owner shall give written approval of an increase 
in the limit, or he shall cooperate in revising the project 
scope or quality, or both, to reduce the cost as required. 

6.6 Since the Architect has no control over the cost of 
labor and materials, or competitive bidding, he does not 
guarantee the accuracy of any Statements of Probable Con- 
struction Cost, or any Semi-Detailed or Detailed Cost Esti- 
mates. 



ARTICLE 7. DIRECT A REIMBURSABLE EXPENSE 

7.1 Direct Personnel Expense includes that of principals 
and employees engaged on the Project including architects, 
engineers, designers, job captains, draftsmen, specification 
writers, typists and Project Representatives, in consultation, 
research, designing, producing drawing, specifications and 
other documents pertaining to the Project, and services dur- 
ing construction at the Project site. 

7.2 Reimbursable Expense includes actual expenditures 
made by the Architect in the interest of the Project for the 
following incidental expenses: 

7.2.1 Expense of transportation and living of principals 
and employees when traveling in connection with the Project; 
long distance calls and telegrams; reproduction of drawings 
and specifications, excluding copies for Architect's office use 
and duplicate sets at each phase for the Owner's review and 
approval; and fees paid for securing approval of authorities 
having jurisdiction over the Project. 

7.2.2 If authorized in advance by the Owner, the expense 
of Project Representative, overtime work requiring higher 
than regular rates, perspectives or models for the Owner's 
use. 

7.2.3 If their employment is authorized in advance by the 
Owner, fees of special consultants, for other than the normal 
structural, mechanical and electrical engineering services. 



ARTICLE 8. PAYMENTS TO THE ARCHITECT 

8.1 Payments on account of the Architect's basic services 
nhall be as follows: 



8.1.1 A minimum primary payment of 5 per cent of the 
compensation for basic services, payable upon the execution 
of the Agreement, is the minimum payment under the 
Agreement. 

8.1.2 Subsequent payments shall be made monthly in pro- 
portion to services performed to increase the compensation 
for basic services to the following percentages at the com- 
pletion of each phase of the work: . - , 

Schematic Design Phase 15%*- Ca^****-' 1 < 

Design Development Phase 35% 15 41-0 ~o 

Construction Documents Phase 75%-H4©^ 

Receipt of Bids 80% 

Construction Phase 100% 

8.2 Payments for Additional Services of the Architect as 
defined in Article 4 above, and for Reimbursable Expense 
as defined in Article 7.2, shall be made monthly upon pres- 
entation of Architect's detailed invoice'. 

8.3 No deduction shall be made from the Architect's com- 
pensation on account of penalty, liquidated damages, or 
other sums withheld from payments to contractors. 

8.4 If any work designed or specified by the Architect 
during any phase of service is abandoned or suspended in 
whole or in part, the Architect is to be paid for the service 
performed on account of it prior to receipt of written notice 
from the Owner of such abandonment or suspension, togeth- 
er with reimbursements then due and any terminal expense 
resulting from abandonment or suspension for more than 
three months. 

ARTICLE 9. ARCHITECTS ACCOUNTING RECORDS 

Records of the Architect's Direct Personnel, Consultant, and 
Reimbursable Expense pertaining to this Project and records 
of accounts between the Owner and Contractor shall be kept 
on a generally recognized accounting basis and shall be avail- 
able to the Owner or his authorized representative at mu- 
tually convenient times. 

ARTICLE 10. TERMINATION OF AGREEMENT 

This Agreement may be terminated by either party upon 
seven day's written notice should the other party fail sub- 
stantially to perform in accordance with its terms through 
no fault of the other. In the event of termination, due to 
the fault of others than the Architect, the Architect shall be 
paid for services performed to termination date, including 
reimbursements then due, plus terminal expense. 

ARTICLE 11. OWNERSHIP OF DOCUMENTS 

Drawings and Specifications as instruments of service are 
the property of the Architect whether the Project for which 
they are made be executed or not. They are not to be used 
on other projects except by agreement in writing. 

ARTICLE 12. SUCCESSORS AND ASSIGNS 

The Owner and the Architect each binds himself, his part- 
ners, successors, assigns and legal representatives to the other 
party to this Agreement and to the partners, successors, 
assigns and legal representatives of such other party in 
respect of all covenants of this Agreement. Neither the 
Owner nor the Architect shall assign, sublet or transfer his 
interest in this Agreement without the written consent of 
the other. 

ARTICLE 13. ARBITRATION 

Arbitration of all questions in dispute under this Agreement 
shall be at the choice of either party and shall be in accord- 
ance with the provisions, then obtaining, of the Standard 
I'orm of Arbitration Procedure of The American Institute 
of Architects. This Agreement shall be specifically enforce- 
able under the prevailing arbitration law and judgment 
upon the award rendered may be entered in the court of 
the forum, slate or federal, having jurisdiction. The de- 
cisions of the arbitrators shall be a condition precedent to 
the right of any legal action. 



OWNKll-ARCHlTKCT ACHKKMKNT 






IN WITNESS WHEREOF the parties hereto have executed this agreement the day and year first above written. 



OWNER. ARCHITECT AGREEMENT TOUR fAGK3 

A1A DOC. H-131 SKl'T. lUilS KU. PAGE 4 



- 



THE AMERICAN INSTITUTE OF ARCHITECTS 

AIA DOCUMENT 

SEPT. 1963 ED. A i 1 1 



PERFORMANCE BOND 



KNOW ALL MEN BY THESE PRESENTS: that , H „. !„..«, 



as Principal, hereinafter called Contractor, and, (Her* i.«n tbe imi titi« «nd 



Surety, hereinafter called Surety, are held and firmly bound unto WJ 

I 
h 



nd address or legal title of Contractor) 



HI 

O 

Ul 



as Obligee, hereinafter called Owner, in the amount of 



for the payment whereof Contractor and Surety bind themselves, their hei 
cessors and assigns, jointly and severally, firmly by these presents. UJ 



WHEREAS, 

Contractor has by written agreement dated 



in accordance with drawings and specifications prepared by (Her* inwrt fuju .me.-rn . 

which contract is by reference made a part hereof, and is hereinafter referred to as the Contract, 



int«U 

-J 

<0 



ddreaa or legal title of Owner) 



DoUan ($ 

execu Drs, administrators, sue- 

1 

o 

i 



contract with Owner for 



now, therefore, the condition op this OBLIGATION is such that, if Contractor shall promptly 
and faithfully perform said Contract, then this obligation shall be null and void; otherwise it shall remain in 
full force and effect. 



The Surety hereby waives notice of any alteration or 
extension of time made by the Owner. 

Whenever Contractor shall be, and declared by Owner 
to be in default under the Contract, the Owner having 
performed Owner's obligations thereunder, the Surety 
may promptly remedy the default, or shall promptly 

1 ) Complete the Contract in accordance with its terms 
and conditions, or 

2) Obtain a bid or bids for submission to Owner for 
completing the Contract in accordance with its terms 
and conditions, and upon determination by Owner and 
Surety of the lowest responsible bidder, arrange for a 
contract between such bidder and Owner, and make 
available as work progresses (even though there should 
be a default or a succession of defaults under the con- 
tract or contracts of completion arranged under this 



paragraph) sufficient funds to pay the cost of com- 
pletion less the balance of the contract price; but not 
exceeding, including other costs and damages for which 
the Surety may be liable hereunder, the amount set forth 
in the first paragraph hereof, The term "balance of the 
contract price," as used in this paragraph, shall mean 
the total amount payable by Owner to Contractor under 
the Contract and any amendments thereto, less the 
amount properly paid by Owner to Contractor. 

Any suit under this bond must be instituted before 
the expiration of two (2) years from the date on which 
final payment under the contract falls due. 

No right of action shall accrue on this bond to or for 
the use of any person or corporation other than the 
Owner named herein or the heirs, executors, adminis- 
trators or successors of Owner. 



Signed and sealed this 
IN THE PRESENCE OF: 



day of 



A.D. 19 



{Principal) 



(Title) 



PEHKOHMANCE/LAHOR-MATERIAL BOND FOUR PAGES 

A!A DOC. AII1 SEPT. 1M3 ED. PAGE 8 



THE AMERICAN INSTITUTE OF ARCHITECTS 

AIA DOCUMENT 



PT. 1963 ED. A401 



STANDARD FORM OF SUBCONTRACT 



THIS FORM TO BE USED IN CONNECTION WITH THE LATEST 
EDITION OF AIA DOCUMENT A201. GENERAL CONDITIONS OF THE CONTRACT 



THIS AGREEMENT 

made this day of 

BY AND BETWEEN 



z 
111 

in the year NineteejX lunoreli and 

ul 
u 

Of 



rein 



hereTh fter,ca led the Contractor, and 
fterQ led the Subcontractor. 



WITNESSETH, 



herejj 
< 


ul 



(0 

That the Contractor and Subcontractor for the consideration hcreintu ;r nar ed agree as follows: 
ARTICLE 1. The Subcontractor agrees to furnish all material and perform II worl as described in Article 

2 hereof for (H.r. n.m. the kind of bulldln» q ■*• 



for (Kara Inwrt i 



hereinafter called the Owner, at ih.™ cn»n lotoiion of work) 



in accordance with the General Conditions of the Contract between the Ow 



accordance with Supplementary General Conditions, the Drawings and>M e Sk ifications prepared by 



E 



ui 



o 
1 
3 

ler am the Contractor and in 



hereinafter called the Architect, alt of which General Conditions, Drawings and Specifications, signed by 
the parties thereto or identified by the Architect, form a part of a Contract between the Contractor and the 
Owner dated, 19 , and hereby become a part of this contract. 



THREE PACES 



ARTICLE 1. The Subcontractor and the Contractor agree that the materials to be furnished and work 

tO be done by the Subcontractor are (lnaert • description of tha work by MfmM to Drawing nm«W »ml Specification pilo) 



ARTICLE 3. The Subcontractor agrees to complete the several portions and the whole of the work herein 

SUblet by the time Or times following: (Here insert the date or dates and if there be liquidated damagea stale them) 



ARTICLE 4. The Contractor agrees to pay the Subcontractor for the performance of his work the sum of 

Dollars ($ ) 

in current funds, subject to additions and deductions for changes as may be agreed upon, and to make pay- 
ments on account thereof in accordance with Section 5 hereof. 



STANDARD FORM OF SUBCONTRACT THREE PAGES 

A1A DOC. A«01 * SEPT. l'J63 ED. PACE 1 



ARTICLE 5. The Contractor and Subcontractor agree to be bound by the terms of the Agreement, the 
General Conditions, Supplementary General Conditions, Drawings and Specifications as far as applicable 
to this subcontract, and also by the following provisions: 

provided by the Contract Documents or the subcontract, 
if either of these provide for earlier or larger payments 
than the above. 



The Subcontractor agrees — 

a) To be bound to the Contractor by the terms of the 
Agreement, General Conditions of the Contract, the 
Supplementary General Conditions, the Drawings and 
Specifications, and to assume toward him all the obliga- 
tions and responsibilities that he, by those documents, 
assumes toward the Owner. 

b) To submit to the Contractor applications for pay- 
ment in such reasonable time as to enable the Contractor 
to apply for payment under Article 24 of the General 
Conditions. 

c) To make all claims for extras, for extensions of time 
and for damage for delays or otherwise, to the Contrac- 
tor in the manner provided in the General Conditions 
of the Contract and Supplementary General Conditions 
for like claims by the Contractor upon the Owner, ex- 
cept that the time for making claims for extra cost is 
one week. 

The Contractor agrees — 

d) To be bound to the Subcontractor by all the obliga- 
tions that the Owner assumes to the Contractor under 
the Agreement, General Conditions of the Contract, the 
Supplementary General Conditions, the Drawings and 
Specifications, and by all the provisions thereof afford- 
ing remedies and redress to the Contractor from the 
Owner. 

e) To pay the Subcontractor, upon the payment of cer- 
tificates, if issued under the schedule of values described 
in Article 24 of the General Conditions, the amount al- 
lowed to the Contractor on account of the Subcontrac- 
tor's work to the extent of the Subcontractor's interest 
therein. 

f) To pay the Subcontractor, upon the payment of cer- 
tificates, if issued otherwise than as in (e), so that at all 
times his total payments shall be as large in proportion 
to the value of the work done by him as the total 
amount certified to the Contractor is to the value of the 
work done by him. 

g) To pay the Subcontractor to such extent as may be 



h) To pay the Subcontractor on demand for his work or 
materials as far as executed and fixed in place, less the 
retained percentage, at the time the certificate should 
issue, even though the Architect fails to issue it for any 
cause not the fault of the Subcontractor, 
j) To pay the Subcontractor a just share of any fire in- 
surance money received by him, the Contractor, under 
Article 29 of the General Conditions, 
k) To make no demand for liquidated damages or 
penalty for delay in any sum in excess of such amount 
as may be specifically named in the subconract. 
I) That no claim for services rendered or materials 
furnished by the Contractor to the Subcontractor shall 
be valid unless written notice thereof is given by the 
Contractor to the Subcontractor during the first ten days 
of the calendar month following that in which the 
claim originated. 

m) To give the Subcontractor an opportunity to be 
present and to submit evidence in any arbitration in- 
volving his rights. 

n) To name as arbitrator under arbitration proceeding 
as provided in the General Conditions the person nom- 
inated by the Subcontractor, if the sole cause of dispute 
is the work, materials, rights or responsibilities of the 
Subcontractor; or if, of the Subcontractor and any other 
subcontractor jointly, to name as such arbitrator the 
person upon whom they agree. 
The Contractor and the Subcontractor agree that — 
o) In the matter of arbitration, their rights and obliga- 
tions and all procedure shall be analogous to those set 
forth in this contract; provided, however, that a decision 
by the Architect shall not be a condition precedent to 
arbitration. 

Nothing in this article shall create any obligation on 
the part of the Owner to pay or to see the payment 
of any sums to any Subcontractor. 



IN WITNESS WHEREOF 

the parties hereto have executed this Agreement, the day and year first above written. 



Subcontractor 



STANDARD FORM OF SUBCONTRACT 



THREE PACKS 



AIA DOC. A401 



SEPT. 1963 ED. 



124 



F. LETTERS 



Letters were written to authorities in the field of in- 
terior design for assistance and advice. Three copies are 
submitted. 



UeUinnnt Sociei'l o{ InteKioi Veiiqneu 
)ia.ZLcmil Hzadquantent, 
7 57 .Vest 57tk Stueet 
New Yolk Cittl 



?Oit Of liCe. "OX. '!■:, 

Lai Vzgai, Utvada S9101 
June S, 1967 



Qentlemeiu 

linden, tlie bapeA.visi.on of, Opal G^owX IliU, Piofeaon pi 1ntvu.DK Oe&iqn, 
Kaniai State Uiu.Wili.tn, 7 ?■ ■ n"-(t<\q a miteH.' i tVu's on '"Suiineii 
P.wctlce •£'". ZnteAiox. Vesign." I' ™ have, an'i buggestiom at in(o/vmjtion 
toliich moutd fee o-' help, I laouJtd be mts-t fltate'iti. '"'ue^tioni which concetti 
me woa.£ at this tone. a--.<i: \ 

J. Voes f.'m 3';i 'aitc b'tiKlnx deS^nen near/ £o feno"> something 
about bin h i e S ' , •-■■•; nc fice? 



I ( 60, r: 
btf f'lp. dc/i(. 



"ip .tta\v«yi4 o{ buitneii nlaati.cn. moit needed 



3. W/teAe iMrf hob>ihoufd tlvis information be twined? 
Aw/ ai6JLtta.net which nou car. <]7>s. cip. viilZ be gneatlu apptieeiated. 



Voivis tnul" 




Jacqueline. H. UoaJ 



Voit Office. Kox 7420 
Lai ''egai, Nevada, t' 
lane «, 1167 



New Von.li Chap-tun 

Hn.ti.onnf Home. ta&hiani League 

767 Lexington Avenue 

New Von.k 10021 

Ge.ntlone.ni 



I con noticing a matten'i thesii on "Butineit ?».ac.ti.cc in JntelUon 
Veiign." Ijj iiou have, mm aiggeyticm 7 woufd be moit otateJut. 
tlucitioni n'hidi concein me moit a\ (hit time ane* 

1. Ooei the. gnaduate inte&oA detijgneA. need to know 
iometking about buii.nei\ wwcticfc? 




2. If to, lahat n -_'•' • 'v \ i ' buttne.it <vw.eti.ce, moit 
lacking bn the. deiigneltt 



Whvte rind ho 

7 can enctoting 15$ fr.i 
inhieh wai of fe/ied bi/tke 

Thanh wu 




Id thii Infaixmtion be. fe.aA.ned7 

let "Vouk Ctvt&th in Hoik Tuinlthinqt, 
1967 ij>iue of IntuuMi. 

p. ■/><! can give me. 



Vouti txutii 



Jacqueline H. "'and 



Poit Office. Vox 7' 
Lai Vcqai, Ue.vn.da ;»•> 
.Tune S, 1967 



-' 



Jiwiej MeA&tefe Sffiit/t / 

Vn.ziide.nt, AmeAicanJiAtitute of, InteAlon T>cii.aneAi 
Cocoanut Cxove, tlo/Uda 

VeM Ma. Smith, 

UndeA the iwaeJiviiian o< Om\ Swum Hilt, \T*>, famai state. 
UniveA&it'i, T am uuUtlnn a maiteji'i theSsi. on "^uii.ne.a Pfu&ctt&e. in 
TnteAion vciian,'' In rtiu*MC *o completed." lackina exce.pt (on. the. 
ttei'iendoui cout'Ubuti/r.s 0' £/t<\ AmeAicuin In&.tttute o{ InfdtioA 
Sw-cgiiKi, J <X;:rf mtiUktconAilcAabVi handicapped untiM 1 can &&- 
cuAe. ■MAmiM.loii to ouote (-tSlN^/ie "/Irtitrtortofc" <uid irwie 0|< £'ii» jvio- 
cze.di.nai of, ioonireiwb^.ttuigt and conmJMzeA . I have, had nood 
coopeJiation l yo,-\ UndividuakAtO membe-ii, Uu vionk would be. mote 
valuable ^ iV (Ati to ail. mole intoit-.uti.on. UeJ.th.et Ibti. Hilt 
non 1 <'!J/A to ini>utXgCT!pon the Institute, -u'e (uAt loant to make a 
{uKth^i contribution to the f,ietd of. inteAioi deiiqn. 

aiJjon 01 iugqeitiom loJ.11 be wetcmed. 

Vouii tAul'i 




lacoueline. H. Maid 




NATIONAL HOME FASHIONS LEAGUE, INC. 

NEW YORK CHAPTER 



July 18,1967 



Miss Jacqueline H. Ward 
Post Office Box 7420 
Las Vegas, Nevada 89101 



Dear Miss Ward: 



Please forgive the unavoidable delay in answering your 
letter of June 8 covering business practicein interior design. 

Regarding your questions: 

1. Yes, the graduate interior designer needs to know 
about business practice - the more the better. 

2 . It is difficult to say in what areas of business 
practice interior designers are most lacking, as each person's 
background is different. However, it often seems that the 
importance of keeping clear, systematic records, especially 

financial, tends to be overlooked. 

3. This information may be learned in various ways — 
in school, through practical experience gained while working on 
a job, and by consulting various experts such as accountants or 
lawyers . 

We are enclosing a copy of our booklet "Your Career in 
Home Furnishings" as you requested. However, no money was enclosed 
with your letter, and we would appreciate your forwarding $.15 to us. 

We hope these answers to your questions will, be helpful. 

Sincerely, 



>(• s6« 



Jeanne M. Lewin 
Administrator 

JML/emo 

Enclosure. 

PS. If you can obtain a copy of the September 1965 issue of 

Interiors , it contained a very interesting article describing 
the ways in which five or six different interior designers 
conduct their business. 

767 LEXINGTON AVENUE • NEW YORK 21 • NEW YORK • TEMPLETON 8-5133 



BUSINESS PRACTICE IN INTERIOR DESIGN 



by 



JACQUELINE HANLY WARD 
B. S., Kansas State University, 1938 



AN ABSTRACT OF A MASTER'S THESIS 



submitted in partial fulfillment of the 



requirements for the degree 



MASTER OF SCIENCE 



Department of Clothing, Textiles 
and Interior Design 



KANSAS STATE UNIVERSITY 
Manhattan, Kansas 



1967 



Designers, decorators, and educators in the field of 
interior design have expressed a need for standards of busi- 
ness practice in this rapidly changing profession. A thorough 
Investigation indicated that no conclusive research has been 
done which is available to the design student or the industry. 
With the aid of the Manual of Professional Practice of the 
American Institute of Designers and the Handbook of Professional 
Practice of the American Institute of Architects combined with 
the experienced opinion of distinguished designers and decor- 
ators, a study was made to answer two questions: (1) What 
business practices may be required by the interior designer? 
and (2) Where can the designer obtain business information? 

Information was obtained from what has been said in the 
trade journals, correspondence, and conversation with de- 
signers actively practicing in the profession. The scope of 
the investigation involved those who design, contract, or who 
sell merchandise. The study was concerned with client rela- 
tionships, office records and procedures, inter- and intra- 
professional affiliations, and contacts with related trades, 
suppliers, materials, labor, and services. 

Professional responsibilities were separated from the 
study of business organization and procedures. The profession 
was found to be decentralized in all fifty states. Social 
contacts and affiliation in professional organizations were 
found to be important for good public relations. Sound busi- 
ness practices and creatively appropriate designs were found 



to be the moat effective insurance for good client relation- 
ships. A clear understanding between the client and designer, 
which usually involved some legal clarification, indicated 
the need for at least some legal counsel. 

Businesses were found to fall into the three basic organ- 
izations of proprietorship, partnership, or corporation. It 
was necessary for the designer or decorator to know and to 
apply pertinent federal, state, regional, and local laws, 
statutes, ordinances, and regulations. Successful businesses 
today required adequate records of transactions; the design 
business was found to be no exception. A review of the in- 
dustry indicated that sound business practices and superior 
design ability were directly related to insure successful 
business. It was observed that numerous bankruptcies were 
attributed to poor business practices. 

Financing was investigated and the relative risks in- 
volved for the designer, contract-designer, and the merchant- 
designer were projected. The designer carried the least fi- 
nancial risk and the least personal liability. The contract- 
designer carried the greatest risks with the largest poten- 
tial margin of profit. The merchant-designer had the added 
financial burden of inventory. 

The various aspects of the profession, business, and 
client relationships were simplified and expressed through a 
series of flow charts and diagrams to clarify all of the 
procedures projected. An annotated list of references was 



given to simplify future study by persons interested in the 
profession. The bibliography included references to period- 
icals, books of business lav and organization, general busi- 
ness and organization directories, and suppliers of furnishing 
materials, services, and labor. 

For the growth and stature of this profession it was con- 
cluded that an expedient and concerted effort should be made 
to establish standard business practices. The student de- 
signer should be exposed to business law and further exposed 
to business practices through a selective apprenticeship pro- 
gram. 



given to simplify future study by persons interested in the 
profession. The bibliography included references to period- 
icals, books of business lav and organization, general busi- 
ness and organization directories, and suppliers of furnishing 
materials, services, and labor. 

For the growth and stature of this profession it was con- 
cluded that an expedient and concerted effort should be made 
to establish standard business practices. The student de- 
signer should be exposed to business law and further exposed 
to business practices through a selective apprenticeship pro- 
gram.